Chapter 3 in a book on school law discusses a few of the many issues in the area of education for the handicapped which are being litigated in courts and agencies throughout the United States. Specifically, the chapter covers litigation regarding the application of the Education for All Handicapped Children Act, referred to as Public Law 94-142, and Section 504 of the Rehabilitation Act of 1973. Section 504 contains numerous regulations applying to employment practices, program accessibility, education at all levels, and to certain health, welfare, and social services. Cases cited and discussed include (1) whether a private college must furnish an interpreter for a deaf student; (2) whether a student with a hearing disability must be accepted into a nursing program; (3) whether standardized tests can be used to measure intelligence; (4) whether certain services required by handicapped students are "related" or "medical" services; and (5) whether handicapped students can be expelled. (Author/MLF)