The doctrine of stare decisis is a legal principle that mandates courts to follow precedents set by previous decisions in similar cases. This ensures consistency and predictability in the law, allowing individuals and entities to understand their rights and obligations based on established rulings. When a court applies stare decisis, it respects the rulings of higher courts within the same jurisdiction. This means that once a legal issue has been decided, lower courts are generally bound to follow that decision in future cases, promoting stability in the legal system and reducing the likelihood of arbitrary judgments.