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ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems

Hana lost a civil case in a court of first instance and wishes to appeal. In a typical hierarchical court system, which feature explains why the appeal court's decision on a point of law may bind the lower court in later cases?

The doctrine of binding precedent explains it. Under this doctrine lower courts must follow the legal rulings of higher courts in the same hierarchy in later similar cases. Separation of powers and party agreement do not create that binding effect on future cases.

  1. AThe doctrine of binding precedentCorrect
  2. BThe principle of separation of powers
  3. CThe parties' agreement to be bound

Explanation

Under binding precedent (stare decisis), lower courts must follow the legal rulings of higher courts in the same hierarchy. Separation of powers concerns the division between legislature, executive and judiciary. Parties' agreement affects their own dispute, not the effect of case law on later cases.

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