A legal system in which the body of law is derived more from court decisions as opposed to statutes or constitutions.

• A. Employment at will
• B. Common-law system
• C. Disclosed principal
• D. Employee

Answer: (B)

Relying on court decisions and precedent to shape the law describes a common-law system. In this approach, judges decide cases and their rulings become part of the law, guiding future decisions through the doctrine of stare decisis. Statutes and constitutions still exist, but many areas of law develop through case law, with judges interpreting and applying general principles to specific disputes. Civil-law systems rely primarily on codified statutes and written codes, enacted by lawmakers. The other terms here relate to employment or agency concepts rather than the source of the legal system.