This study examined background factors in children that influence teachers' ratings on the Classroom Adjustment Rating Scale (CARS). Sixteen classrooms in five schools were selected to include a range of socio-economic and cultural groupings from Inner London, England Primary Schools. Teachers used the CARS and an additional short scale of overall adjustment to rate 190 children, ranging from 8 to 12 years of age. The information collected about the children and their families included age, birth order, family size, parental occupation, mother tongue, language, number of schools attended and number of residence changes. Separate analyses for English and non-English mother tongue groups indicated that social ethos and gender contributed to a significant percent of the variability in total teacher rating for both groups. Analysis suggested that teachers' ratings of children are influenced by the children's social and family situation. Gender also had a significant impact on the teacher rating process. Females overall were rated more positively than males on school-related adjustment behavior. Overall, children who came from families with higher status occupations, who had families which provided child-centered reasons for school absences and provided relative consistency of communication with the child and school, were rated more positively than children with less favorable environments. (Author/MM)