This brief report states that legal problems with competency testing have been more procedural than substantive-more concerned with implementation than legitimacy. The right to notice is the most straight-forward and firmly established principle to emerge from competency testing litigation. Students must have fair warning and opportunity to prepare for competency tests and/or to prepare for changed graduation requirements. The length of notice should be related to the magnitude of the new requirements. The tests must measure what students have learned, therefore, content validation is legally required. However, controversy remains concerning how to satisfy a content validation requirement. Test impact on special populations must be considered. Competency tests may not reflect racial or cultural bias. And, although special students are not necessarily entitled to regular diplomas, those completing their agreed upon individualized education programs have a right to some certification, such as a special diploma. (PN)