The proceedings of the second Preventive Law Institute, which focused on the legal aspects of educational uses of technology, are included in this report. Following the preface, two overviews (Thomas M. Griffin, Fred "Rick" W. Weingarten) provide an introduction to preventive law for educators and explore the nature of information technology and its application to education. The following two papers are titled "Negotiating Contracts for the Acquisition of Computer Hardware and Software by State Education Agencies and Some Comments on Copyright and Intellectual Property Rights" (Shannon T. Vale) (an outline of this paper is provided in Appendix B) and "Students' Rights: Privacy and Equal Access and Teachers' Traditional Role and Hesitancy to Change" (Thomas M. Griffin). Next is a summary of the discussions of the following four issues: (1) technological effectiveness and computer literacy, (2) equal access and equity; (3) educational changes and teacher training, and (4) the legal issues of contract negotiation and infringement of patents and copyrights on hardware and software. Following this summary is a report of a roundtable discussion of legislative barriers to full use of new technology in education. A closure session, dealing with suggestions, strategies, and resources, is also reported. Appendix A provides the agenda and descriptions of the presenters, participants, and institute staff. (DCS)