Business Degree Certification Practice Test

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What type of legal system relies on case precedents?

Civil law system
Theocratic law system
Common law system
Administrative law system

The correct answer is: Common law system

A common law system is characterized by its reliance on case precedents, meaning that the decisions made in previous court cases are used as a guiding principle for resolving new cases. In this legal framework, judges interpret and apply laws based on the outcomes and judgments of past rulings. This allows for consistency and predictability in legal decisions, as similar cases are treated in a similar manner based on established precedents. In contrast, a civil law system is primarily based on statutes and written codes, without significant reliance on judicial decisions from previous cases. Theocratic law systems are based on religious principles and texts, while administrative law systems govern the actions of administrative agencies, primarily focusing on regulatory frameworks rather than case precedents.