When Can the Court of Appeal Decide Not to Follow

question 8

Multiple Choice

When can the Court of Appeal decide not to follow a decision made by the House of Lords/Supreme Court?

• A) When the House of Lords'/Supreme Court decision was made per incuriam.
• B) When cessante ratione legis, cessat ipsa lex.
• C) When the House of Lords'/Supreme Court decision is clearly wrong, and both the reasoning and the decision should be departed from.
• D) Never.
• E) When the rules set out by the 1966 Practice Statement apply.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, highlighting the impact of fixed costs.

Automobile Manufacturing

The industry involved in the design, development, production, marketing, and selling of motor vehicles.

Sensitivity Analysis

A procedure for examining the repercussions that different magnitudes of an independent variable have on a dependent variable, within the context of predetermined assumptions.

Cash Break-Even

The amount of revenue necessary to cover all cash operating expenses, ignoring non-cash costs.