CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law
A High Court in State X decides a point of law. Later, a lower court within State X faces a case with materially identical facts. Under the doctrine of precedent, how should the lower court treat the High Court's decision?
The lower court must follow it, because a High Court's decision is binding on courts subordinate to it within its territory under the doctrine of precedent. It would only be persuasive for courts of other States, and no Supreme Court approval is required for it to bind the lower courts.
- AIt is merely persuasive and may be ignored freely
- BIt is binding on the lower courtCorrect
- CIt is binding only if the Supreme Court has approved it
- DIt is binding only on courts in other States
Explanation
Under the doctrine of stare decisis, a decision of a High Court binds courts subordinate to it within its territorial jurisdiction. Persuasive value applies to courts outside that hierarchy, such as a High Court of another State. Approval by the Supreme Court is not needed for binding force on subordinate courts.
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