What does the two court system in the U.S. consist of?

The two court system in the U.S. consists of federal and state courts. This structure reflects the dual sovereignty principle that is foundational to the American legal system, where both the federal government and the state governments have their own judicial systems.

Federal courts primarily deal with cases that involve federal laws, constitutional issues, and disputes between states or residents of different states. On the other hand, state courts handle the vast majority of legal disputes, including those related to state laws, family law, contracts, and criminal cases that do not fall under federal jurisdiction.

The option referencing federal and local courts is misleading, as "local" courts do not define the structure of the U.S. court system, and local courts would typically be a subset of state courts. The mention of state and town courts mischaracterizes the scope; while towns may have courts, they are not part of the fundamental dual system. Lastly, municipal and district courts are specific types within the state court system and do not encompass the broad categories of federal and state courts. This distinction is crucial for understanding how the legal system operates in the U.S., demonstrating the separation of powers and responsibilities between different levels of government.