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An example of taking things too far, is the introduction of Sharia courts in England. In my view, it's vile.
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It's not compulsory though, is it?
There is a Beth Din in pretty much any city with a sizeable Jewish population but they really only do divorces and conversions. Any legal disagreement between two Jews can be tried under Jewish law in a Beth Din if they both agree to it, but it doesn't happen very often.