Which of the following best describes the jurisdiction of Federal Courts?

Federal courts have jurisdiction primarily in two areas: cases that involve federal questions and cases that are based on diversity of citizenship. A federal question arises when a case deals with issues that pertain to federal laws, treaties, or the Constitution. For example, if a legal dispute involves the interpretation of a federal statute, it can be heard in federal court.

Diversity of citizenship refers to situations where the parties involved in a lawsuit are from different states, and the amount in controversy exceeds a specified threshold. The purpose of this jurisdiction is to provide a neutral forum for parties who may not receive a fair trial in state courts, particularly when the parties are from different states.

The other options do not accurately describe the scope of federal court jurisdiction. For instance, issues solely related to state law or local governance, such as municipal regulations or local criminal offenses, typically fall under the jurisdiction of state courts unless there is a compelling federal interest that warrants federal court involvement. Thus, the best description of the jurisdiction of Federal Courts is that they handle federal questions and cases involving diversity of citizenship.