Final answer:
The value of precedent in business dealings lies in ensuring legal consistency and predictability, which encourages economic activity and maintains judiciary integrity. Precedent, guided by the principle of stare decisis, has significant influence in the legal system but can be adapted over time as necessary. The correct answer is option b. and d.
Step-by-step explanation:
The value of precedent in business dealings is multi-faceted. It serves as a guide for consistent application of the law, ensuring that similar cases are decided in a similar manner thereby providing stability and predictability to the legal environment. This consistency is important for businesses as it encourages expansion and fosters economic activity by providing a dependable legal framework for operations. Precedent also maintains the integrity of the judiciary by limiting the influence of personal biases and has nearly the same force as a statute in guiding judicial decisions. However, precedents are not rigid and can be reviewed or overturned, especially when interpretations change or legal injustices need to be corrected.
Judges often look to previous decisions or stare decisis ("to stand on decisions") to direct their rulings in new cases. This principle of stare decisis is essential in the U.S. common law system and carries a weight that lends legitimacy to the judicial process, ensuring faith in the administration of justice. While judges may interpret precedent to align with policy preferences, they are ultimately bound by the principle that past decisions should guide future ones unless there is a strong justification for change.