Final answer:
Jurisdiction allows federal courts to hear cases and make legal decisions, specifically on issues involving federal law, interstate disputes, and cases with diverse citizenship among others.
Step-by-step explanation:
Jurisdiction gives federal courts the authority to hear a case, and to make a binding legal judgment or decision based on the facts presented to the court. The Constitution and the Federal Judiciary Act of 1789 establish the jurisdiction of the federal courts in regard to what cases they may hear.
Section 2 of Article III defines the jurisdiction to include cases involving federal law, disputes between states, and disputes between residents of different states, with modifications such as the 11th Amendment limiting federal jurisdiction in certain cases. Federal courts also have the authority to hear cases dealing with customs and international trade laws, monetary claims against the government, bankruptcy, and more.
In addition, the U.S. Supreme Court, being the highest court in the land, has the ultimate authority in interpreting the Constitution and applies it to laws to ensure domestic tranquility. It also hears cases covering a vast array of subjects including those involving federal matters such as trade disputes, military justice, government lawsuits, patent or copyright infringement, Native American rights, and disputes involving interstate commerce.