Courts create what type of law?

The correct answer is case law because courts create legal precedents through their decisions in individual cases. When a judge interprets statutes, constitutional provisions, or regulations and issues a ruling, that ruling can become part of the body of law that other courts may look to in future cases. This system of precedent, known as stare decisis, ensures consistency and predictability in legal interpretation and application.

Case law is distinct from other legal sources. Regulations are created by administrative agencies, and statutes are enacted by legislative bodies. Policies may guide the operations of organizations or government entities but do not hold the same legal weight as case law or statutes. Therefore, case law specifically refers to the body of law developed by the courts through their rulings and interpretations, making it the accurate choice among the listed options.