When confronted with a student with acquired immune deficiency syndrome (AIDS), administrators must act very cautiously. In addition to the public relations and political problems asociated with students with AIDS, administrators are faced with the legal implications of their decisions; their actions, if uninformed, can result in monetary liability for their school systems or even for themselves. Addressing the law as it pertains to AIDS in the public schools, this legal memorandum outlines three legal theories that have been used to argue for the admission of students with AIDS. First, the Rehabilitation Act of 1973, Section 504 is explained, and four specific AIDS or AIDS-related cases are discussed. Second, the language of the Education for All Handicapped Children Act of 1975 (P.L. 94-142) is defined, followed by a discussion of three AIDS or AIDS-relevant applicable cases. And third, the equal protection clause of the Constitution is discussed. Other legal theories that seem useful but have not yet developed into reported court cases include the U.S. consitituional rights of privacy and reputation, federal statutes, individual state constitutions/statutes, and common law tort. (24 references) (KM)