What legal principle is based on the use of precedent in arbitration and mediation?

The correct answer is based on the understanding that common law is a legal system that places significant emphasis on precedents established by prior court decisions. In contexts such as arbitration and mediation, common law principles guide dispute resolution by relying on previously adjudicated cases to inform current judgments. This reliance on case law creates consistency and predictability in legal outcomes, which is particularly valuable in alternative dispute resolution frameworks.

Common law evolves through the decisions made by judges in individual cases, which serve as guides for future cases with similar circumstances. This notion of precedent is fundamental in maintaining a coherent legal system where similar facts lead to similar legal interpretations. In arbitration and mediation settings, parties often look to precedents to argue their cases, and arbitrators may consider previous rulings when resolving disputes.

In contrast, other legal systems, such as civil law, focus more on codified statutes rather than precedents. Administrative law deals primarily with regulations created by governmental agencies, and statutory law is based on written laws enacted by legislatures. These systems do not rely as heavily on judicial precedent as common law does, making common law the appropriate choice in the context of utilizing precedents in arbitration and mediation.