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This verse means one should eat from the animal which has been slaughtered with the name of Allah Almighty and that which died its own death or was slaughtered in the name of idols is unlawful (ḥarām). The lawful nature of an animal is dependent upon it being slaughtered with the name of Allah Almighty. The authority to permit or proscribe something belongs to Allah Almighty alone. So objects are declared as lawful (ḥalāl) or unlawful (ḥarām) in respect to His guidance.