Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

Which of the following best defines "Case Law"?

1. Civil laws established by legislatures

2. Legal principles developed through judicial decisions

3. Statutory regulations enforced by governments

4. Oral traditions of legal practice

The correct answer is: Legal principles developed through judicial decisions

The definition of "Case Law" refers to legal principles that have been established through judicial decisions. This type of law is created when judges make rulings on specific cases, which serve as precedents for future similar cases. When courts interpret statutes or regulations, their interpretations can become part of the legal framework that other courts may follow to ensure consistency and predictability in the law. As legal cases are adjudicated and decisions made, they contribute to a body of law that reflects judicial reasoning and application. In contrast, civil laws established by legislatures represent statutes that have been formally enacted into law by legislative bodies, while statutory regulations refer to rules created by governmental agencies based on existing statutes. Oral traditions of legal practice relate to customary practices and principles that have been passed down verbally, rather than codified in written law. These distinctions highlight why the development of judicial decisions is the most accurate description of case law.