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What is known as the "double jeopardy" rule means defendants cannot be tried again for the same offence after they have acquitted.
Three of the five suspects in the Lawrence case were acquitted of the teenager's murder.
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Double jeopardy means they could not be tried a second time even if damning new evidence came to light.
And even if the Law Commission agrees with that the rule should be scrapped, the change would not be retrospective.
Stephen's parents issued writs against the suspects earlier this year seeking damages for the murder of their son.
Changing the legal culture
Like the right to silence and the presumption that everybody is innocent until proven guilty, double jeopardy is part of the legal culture which firmly puts the onus for proving cases onto the prosecutors.
Three years ago there was a slight relaxation of the double jeopardy rule for cases where people had been found not guilty but where there had been so-called "jury nobbling".
But any further relaxation in the rule is likely to be vehemently opposed by civil liberties groups and lawyers alike, particularly since the right to silence has been restricted.
The review's terms of reference are to consider the law in England and Wales relating to double jeopardy after acquittal, taking into account:
Mr Straw first signalled his intention to ask the Law Commission to examine this area of the law in his action plan on the inquiry published in March.
Crime rise 'linked' to Lawrence inquiry
(03 Jun 99 | UK)
Lawrences launch civil action
(21 Apr 99 | UK)
Double jeopardy: The defendant's friend
(24 Feb 99 | Stephen Lawrence)
The Stephen Lawrence Family Campaign
The Stephen Lawrence Inquiry
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