Courts create what type of law?

Courts create case law through the process of judicial decision-making. When judges interpret statutes or regulations, their rulings in specific cases become part of the broader legal framework and serve as precedent for future cases. This body of law helps to fill gaps in legislation and clarify the application of existing laws to new situations.

In essence, case law evolves from the decisions made in individual legal disputes, which are documented in court opinions. These opinions establish legal principles that can be cited in subsequent cases, contributing to the development and consistency of legal standards.

In contrast, regulations are typically created by administrative agencies within the framework established by statutes, and statutes themselves are laws enacted by legislative bodies, such as Congress or state legislatures. Policies may guide the objectives and practices of organizations but aren't classified as formal law in the same way that case law and statutes are.