Paralegal Advanced Competency Exam (PACE) Practice Exam

What is binding precedent?

1. Decisions from local courts that set future standards

2. Rulings from appellate courts that must be followed

3. Guidelines established by legal scholars

4. Statutes enacted by legislative bodies

The correct answer is: Rulings from appellate courts that must be followed

Binding precedent refers to legal principles established by the rulings of higher courts that lower courts within the same jurisdiction are required to follow in future cases. This concept stems from the doctrine of stare decisis, which means "to stand by things decided." When an appellate court makes a ruling on a particular legal issue, that decision becomes binding on all lower courts in the same jurisdiction when they encounter similar issues. The reason the other options do not define binding precedent is that they reference different forms of legal authority. Local court decisions may influence future cases but do not hold the same weight as appellate court rulings. Guidelines set by legal scholars, while potentially influential, do not impose a legal obligation on courts. Lastly, statutes are laws created by legislative bodies, and while they govern legal conduct, they do not relate to the judicial decisions that create binding precedent.