When a court establishes a binding precedent, the reason for its decision is referred as __________________.
A
State decisis
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B
Caveat emptor
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C
Res judicata
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D
Ratio decidendi
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Solution
The correct option is A State decisis Stare decisis.
It is a Latin legal maxim which means 'to stand by'. Stare decisis is a lawful regulation that commits courts to follow authentic situations when making a decision on a comparative case. State decisis guarantees that cases with comparable situations and actualities are drawn closer similarly. Basically, it ties courts to follow lawful points of reference set by past decisions.