Common law refers to the body of law that is derived from court decisions, rather than statutes or regulations passed by legislative bodies or regulatory agencies. Therefore, B is the correct answer as it states that common law grows out of court decisions. The other answer choices are incorrect as they refer to regulations and legislation passed by regulatory agencies and legislative bodies.

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Common Law

Question 56

Multiple Choice

Common law:

A) includes regulations developed by the Federal Trade Commission.
B) grows out of court decisions.
C) includes regulations developed by the Better Business Bureau.
D) is based on legislation passed either by state legislatures or by Congress.
E) is established by local, state, and federal regulatory agencies.

Correct Answer: