Acara is a narrow scope of customary law. These laws are put into practice by people who hold a power over a group and this power is ascertained by a theological connection to the divine by understanding Vedic Literature. The power to develop laws shifted eventually from Vedic scholars to community leaders. Their actions gained the respect of their fellow community members. Acara is referred as the third source of dharma. Acara's power comes from its ability to connect with the Vedas. Dharmashastras have several references to Acara that reveal the real importance customs had as far as settling of legal disputes are concerned. Rules concerning legal procedure also emphasize the importance of custom.
Acara are transcendental laws. Acara's meaning has changed from time to time. Earlier Acara was observed or declared by learned Brahmins who had high morals. Acara became the actual source of Hindu law in the present-day.