This Digest overviews legal challenges in five areas of test use for decision-making in schools: ability tracking, placement in special education classes, test scores as college admissions criteria, test disclosure, and teacher competency testing. Cases illustrating these challenges are described and include: Hobson v. Hansen (1967), Moses v. Washington Parish School Board (1971), Larry P. v. Riles (1972), Parents in Action on Special Education v. Hannon (1980), Diana v. California State Board of Education (1970) and Bakke v. Regents of the University of California (1976). In general, cases have been decided based on the specific circumstances of each case, and revolve around the validity of the test for a specific use. Many cases concern issues of racial, cultural, or linguistic biases in the tests themselves. (BS)