This legal document presents the decision of the U.S. Supreme Court in the case brought against the University of Michigan's use of racial preferences in undergraduate admissions. In Gratz et al. v. Bollinger et al., the Court held that while race is one of a number of factors that can be considered in undergraduate admissions, the automatic distribution of 20 points to students from underrepresented minority groups is not narrowly tailored. It reiterated its holding from the 2003 Grutter v. Bollinger et al. decision that diversity is a compelling state interest that can justify the consideration of race as a factor in university admissions. The Court emphasized the importance of individualized review to assess all of the qualities each applicant might contribute to the diversity of the entering class. It ruled that the admissions process of the College of Literature, Science, and Arts did not meet this standard insofar as 20 (out of 150 possible) points were automatically awarded to all applicants from underrepresented minority groups, without further consideration of their other individual attributes. Finally, the Court upheld that "the fact that the implementation of a program capable of providing individualized consideration might present administrative challenges does not render constitutional an otherwise problematic system." This case was remanded to the federal district court for further proceedings consistent with this opinion. (SM)