What is known as legal precedent that arises out of court decisions?

The correct response identifies common law as legal precedent arising from court decisions. Common law is developed through the outcomes of individual court cases and the principles that emerge from judicial rulings. As courts address cases, they set standards and interpretations that serve as precedents for future cases, allowing for a consistent application of justice.

This system allows the law to evolve over time as societal norms and values change, thereby ensuring that legal decisions are not entirely reliant on codified statutes. The reliance on previous decisions helps to promote stability and predictability in the legal system, as similar cases are likely to result in similar outcomes if they are adjudicated in the same legal context.

Statutory law, in contrast, refers to laws that are enacted by legislative bodies and are written and codified, rather than developed through judicial interpretation. Regulatory law relates to rules made by governmental agencies based on statutes, which also does not arise from court decisions. Administrative law involves the rules and regulations created by administrative agencies, separate from judicial decisions. Each of these alternatives operates in a different capacity within the legal framework, highlighting the unique role that common law plays as a source of legal precedent.