Cases related to school policies that mandate or lead to automatic grade and/or credit reduction are reviewed in this study. Standard legal research methods were used to analyze 14 appellate and state court cases, which were categorized according to the type of sanction invoked: student suspension for violation of a disciplinary rule; automatic loss of grade points and/or credits for excessive absences; and direct treatment of unexcused absences. Findings indicate that courts are hesitant to intervene in the judgments of school officials, despite sympathy for students' rights. Recommendations for development of school discipline policies include: (1) recognition of the controversial nature of such discipline policies; (2) adoption of a policy statement that clarifies the meaning of academic grades; (3) avoidance of conflict with state statutes, particularly those protecting the practice of religious beliefs; and (4) consideration of legislative enactments and/or local school board regulation as alternative measures. (48 notes) (LMI)