This booklet examines the risks that college and universities face due to student alcohol use and abuse, and outlines procedures that institutions can use to develop effective alcohol policies. Although legal precedents have recognized that colleges and universities do not have a duty to supervise student conduct under principles of in loco parentis, as landlords and proprietors colleges have a legal responsibility to maintain safe premises. Recent legislation also requires colleges and universities to provide educational programs to prevent the illegal use of drugs and alcohol. In order to develop an alcohol policy that balances concern for student with protection against institutional liability, schools should: (1) adopt only rules and sanctions that the school is willing to enforce; (2) enforce the policy consistently; (3) be familiar with all laws relating to the sale of alcoholic beverages and the liability of "social hosts" who serve beverages; (4) emphasize alcohol education programs; and (5) focus on circumstances that present the greatest danger and risk of liability. Examples of recent court cases are provided. (Contains 38 references.) (MDM)