What is the difference between a federal court and a state court?

• A. Federal courts handle only state laws; state courts handle federal issues.
• B. Federal courts hear cases involving federal law or constitutional issues; state courts hear cases involving state law or matters under state jurisdiction.
• C. Federal courts can only hear cases arising in Delaware.
• D. State courts can only hear criminal cases.

Answer: (B)

The main idea is that where a case goes depends on the source of the court’s power and the type of law involved. Federal courts derive authority from the U.S. Constitution and federal laws, so they primarily handle cases that raise federal questions or constitutional issues, as well as certain specialized areas like bankruptcy or patent law. State courts derive their authority from state constitutions and state statutes, so they handle cases involving state laws—things like most contract disputes, property matters, family law, and state crimes.

Sometimes a case can involve both kinds of law, but the general rule is that federal courts focus on federal questions or issues involving the federal government, while state courts handle matters governed by state law. The other choices misstate this: federal courts aren’t limited to state laws, they can hear many federal issues; they can hear cases from any state under the right conditions, not just Delaware; and state courts aren’t limited to criminal cases.