CPB Certified Professional Biller Certification Practice Exam

What is the definition of case law?

1. A system of laws based on statutes

2. Bodies of laws established by court decisions that set precedents

3. A process of legal negotiation between parties

4. A collection of written laws in a jurisdiction

The correct answer is: Bodies of laws established by court decisions that set precedents

Case law refers to the body of law established through the decisions made by courts. These decisions set precedents that influence future cases, creating a framework for interpreting various legal principles. When a court rules on a specific legal issue, that ruling becomes part of the case law, shaping how similar cases are handled in the future. This form of law is essential because it allows for the interpretation and application of statutes and regulations in real-world situations, adapting to changing circumstances and societal norms. In contrast to other types of law such as statutory law, which is based on written statutes created by legislatures, case law evolves through judicial interpretation. This evolution is crucial in ensuring the law remains relevant and contextually appropriate. Case law also contributes to the stability and predictability of the legal system, as lower courts often rely on established precedents when making their decisions.