A study was undertaken at the University of Pennsylvania's Joseph Lauder Institute to assess the usefulness and requirements of case discussion for teaching English to foreign graduate students of business administration. The case method of analyzing and solving simulated business problems was chosen because it: (1) is one of the most common formats for information presentation and discussion found in graduate business schools; (2) requires active student participation; and (3) provides a unique opportunity for future managers to practice skills they will need as decision-makers. The study examined several aspects of the technique as a language-teaching tool in this context. First, rules governing verbal, nonverbal, and cognitive behaviors exhibited by students were identified and the behaviors that combine to make the case discussion a unique speech event were examined. Second, a descriptive model of the communicative competence of successful participants was constructed using various linguistic, sociolinguistic, and extralinguistic variables. Third, the analysis was used to design a curriculum for foreign students. The study used an ethnographic approach. (MSE)