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OK, but this seems different from what you said originally, "States are not obliged to follow, or agree with, federal court decisions in matters that do not involve the particular states as parties."
Basically, a court only has jurisdiction (power) to settle a
dispute between the parties who have brought their dispute to the court.
When a court relies on its own precedent, it is simply saying,"We're going
to be consistent and rule the sane way on the same set of facts. We want
every court that we review to do the same." The Seventh Circuit, a
federal court, does not review Illinois state court decisions. Thus, in a
case that cannot be reviewed in a federal court of appeals, there is no
need for a state court to follow federal court decisions. The basic thing
to remember is that courts do not make law; they only settle disputes.