In a federal system of government, component units retain individual legal sovereignty and possess the constitutional right to unilaterally secede from the union.
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The statement is False. Component units in a federation do not hold individual legal sovereignty or the right to unilaterally secede; those characteristics define a confederal system.
The statement is false because federalism creates a perpetual legal union wherein ultimate international sovereignty resides with the central federation, and component units lack the constitutional authority to secede unilaterally.
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Sovereignty and Indivisibility in Federal Systems