Which type of decisions constitutes legal precedent and is binding on affected parties?

Legal precedent is established through decisions made by authoritative bodies that have the power to interpret and apply the law in a way that must be adhered to in future cases. Precedent decisions are those rulings that set a legal standard and can be used to guide outcomes in similar cases. When a court or an agency issues a precedent decision, it establishes a rule that must be followed by lower courts or agencies unless it is overturned or modified by a higher authority.

Advisory decisions, on the other hand, do not bind the parties involved because they typically provide guidance without imposing legal obligations. Guideline decisions may set standards for procedures or practices but do not carry the same level of authority as precedent decisions. Non-binding decisions are those that offer recommendations or insights but lack the force of law that requires adherence. Therefore, the nature of a precedent decision is what makes it binding on affected parties, ensuring consistency and predictability in the application of the law.