Which legal principle underlies the concept of 'stare decisis'?

The principle of 'stare decisis' is fundamental in common law systems, ensuring consistency and predictability in the law. It means that lower courts are obligated to follow the legal precedents established by higher courts within the same jurisdiction. This hierarchical structure allows for a stable legal framework where similar cases are decided in a similar manner, promoting fairness and reliability.

When a higher court makes a ruling, it sets a precedent that lower courts are expected to adhere to when faced with cases that present similar facts or legal issues. This not only supports the rule of law but also helps streamline the judicial process by reducing the time and resources spent on re-litigating settled legal questions.

The other choices do not accurately describe the essence of 'stare decisis.' For instance, while courts can avoid making unnecessary decisions, this does not capture the binding nature of precedents. Additionally, while all legal decisions can indeed be appealed, this principle does not relate directly to the idea of adhering to precedents. Lastly, the notion that each case must be judged on its own merits contradicts the essential function of 'stare decisis,' which seeks to apply established principles consistently across similar cases.