To help school officials avoid litigation, this newsletter examines two separate issues: student competency testing and educational choice. The authors propose objective certification--in which student achievement is described solely by objective, defensible scores--as a way to avoid the possible injury to students inherent in competency testing. Court litigation involving educational choice, as discussed in the newsletter, reveals a number of legal pitfalls, especially where programs to expand choice may result in racial imbalance. Among the problems mentioned are additional fees for extracurricular activities and educational materials, due process in the withdrawal of choice programs, and aid to private schools. The authors recommend several actions for school districts to take to avoid litigation when implementing choice programs. (RW)