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One of the acknowledged weaknesses of the Articles of Confederation, the foundation of the first US government, was its lack of federal court system to settle issues arising under acts of the Continental Congress and involving the national government as a whole.

When the Framers (the Founding Fathers responsible for writing the Constitution) created the US Constitution, they realize this problem needed to be corrected, so they set up a tripartite (three part, or three-branch) government that included a Judicial Branch to manage a federal court system. The Framers recognized the courts would devolve into a British common law system (in 18th-century England, the understanding and application of law varied from one town or area to the next) which would lack consistency unless the Judicial Branch had one court with ultimate authority over legal interpretation.

The Framers also recognized the new federal government would be called upon to mediate disputes between the states, and that also required a court with supreme authority over constitutional interpretation and the ability to settle those disputes on behalf of the federal government.

This is addressed in Article III, Sections 1 and 2, of the US Constitution:

Article III

Section 1. The judicial power of the United States, shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges, both of the supreme and inferior courts, shall hold their offices during good behaviour, and shall, at stated times, receive for their services, a compensation, which shall not be diminished during their continuance in office.

Section 2. The judicial power shall extend to all cases, in law and equity, arising under this Constitution, the laws of the United States, and treaties made, or which shall be made, under their authority;--to all cases affecting ambassadors, other public ministers and consuls;--to all cases of admiralty and maritime jurisdiction;--to controversies to which the United States shall be a party;--to controversies between two or more states;--between a state and citizens of another state;--between citizens of different states;--between citizens of the same state claiming lands under grants of different states, and between a state, or the citizens thereof, and foreign states, citizens or subjects.

In all cases affecting ambassadors, other public ministers and consuls, and those in which a state shall be party, the Supreme Court shall have original jurisdiction. In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions, and under such regulations as the Congress shall make.

The trial of all crimes, except in cases of impeachment, shall be by jury; and such trial shall be held in the state where the said crimes shall have been committed; but when not committed within any state, the trial shall be at such place or places as the Congress may by law have directed.

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