What is the effect of a Maryland Court of Appeals decision?

• A. It is advisory only
• B. It sets binding precedent for Maryland courts
• C. It applies only to the party involved
• D. It creates federal law

Answer: (B)

A Maryland Court of Appeals decision creates binding precedent for Maryland courts. As the state’s highest court, its rulings establish legal rules that lower Maryland courts must follow in future cases involving similar issues or statutes. This means judges in Maryland look to that decision as the controlling rule of law whenever the same question arises. It isn’t advisory; it directs how laws are interpreted across the state until a later decision overruns it or the legislature changes the statutes. It doesn’t create federal law, which remains under the federal courts. The rule applies statewide, not just to the parties in the original case.