Prepare for the UCF BUL3130 Legal and Ethical Environment of Business Exam 2. Dive into legal and ethical concepts with flashcards, multiple-choice questions, and detailed explanations. Get exam-ready with comprehensive study resources!

Common law is characterized by its origins in judicial decisions rather than legislative acts. It developed from the rulings made by judges in England, creating a body of law based on precedent. This means that past judicial decisions are used as benchmarks for future cases, allowing for predictability and consistency in legal outcomes. As judges interpret laws and resolve disputes, their rulings contribute to the evolution of legal principles, making it a dynamic system tailored to societal norms and values.

Other options do not accurately reflect key aspects of common law: it is not established by formal legislation, as that would pertain to statutory law; it applies to both civil and criminal cases, not solely to criminal matters; and it is not consistent across all countries, as different countries may adopt and adapt various elements of common law to fit their legal systems. Thus, understanding that common law is rooted in judge-made decisions is crucial to grasping its significance and development in legal contexts.