Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What is the Rule of Precedent primarily concerned with?

1. Courts making new laws

2. Current court decisions following past decisions in similar cases

3. Establishing legal duties for all citizens

4. Defining criminal acts

The correct answer is: Current court decisions following past decisions in similar cases

The Rule of Precedent is fundamentally about ensuring consistency and predictability in the legal system by requiring that current court decisions align with past decisions in similar cases. This principle, also known as stare decisis, means that judges are obligated to follow the established legal precedents set by higher courts within the same jurisdiction when making their rulings. This practice helps create a stable legal framework where individuals can understand their rights and obligations based on previously adjudicated matters. In contrast, the other options address different aspects of the legal system. While courts making new laws can occur, the Rule of Precedent specifically emphasizes the importance of adhering to existing laws established through prior rulings rather than creating new legal standards. Establishing legal duties for all citizens and defining criminal acts are important legal concepts but are not the primary focus of the Rule of Precedent, which is concerned with how courts interpret and apply established law rather than establishing new laws or defining new legal duties.