ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems
In a common law country, the Supreme Court previously decided that a particular type of exclusion clause is unenforceable. A lower court now hears a case on materially identical facts. What should the lower court do?
The lower court should follow the Supreme Court decision. Under binding precedent, the ratio decidendi of a higher court in the same hierarchy must be applied by lower courts in cases with materially similar facts, so it is not merely persuasive.
- AFollow the Supreme Court decision, as it is binding precedentCorrect
- BIgnore it, because only legislation is binding
- CTreat it as persuasive only and decide freely
Explanation
Under the doctrine of binding precedent (stare decisis), the ratio decidendi of a higher court binds lower courts in later cases with materially similar facts. Treating it as merely persuasive is wrong because it comes from a superior court in the same hierarchy.
Did you get it right without looking?
One question tells you little. A timed set on Business, political and legal systems shows your real accuracy, how long you take and where you lose marks.
More Business, political and legal systems questions
- In deciding a case, a judge states that the defendant owed no duty because of a specific legal principle, and also remarks in passing what t…
- Parliament in country Zandia delegates power to the Minister of Transport to make detailed safety regulations under an enabling Act. The Min…
- A government minister, using powers granted by an Act of the legislature, issues detailed regulations on product labelling. A trader, Kovar …
- Lumen Co is a public company whose shares are offered to and freely traded by the general public on a stock exchange. Which feature distingu…
- A company director argues that a court should interpret a statute by giving words their plain, ordinary meaning, even if the result seems un…
- A country's constitution provides that the government, the legislature and the courts are each separate bodies, so that no single body holds…