This publication presents a close examination of conceptual, legal and related issues surrounding the dismissal of tenured higher education faculty, under the fourth exception to the Age Discrimination in Employment Act (ADEA). This exception, which will expire on December 31, 1993, permits existing, compulsory retirement-age policies to be applied to employees by their college or university employer at age 70 if the employees are "serving under a contract of unlimited tenure." The study is organized into four parts. The first, an introduction, describes the history of the development of the ADEA legislation and its amendments and exception as well as an overview of the study itself. Section II, "The Concept of Tenure," focuses on tenure's function and justification without considering the law. Part III, "The Legal Aspects of Tenure," addresses the question of whether the concept of tenure constitutes an unacceptable obstacle for institutions of higher education such that their efforts to achieve educational goals is unacceptably impaired. Part IV, "Conclusion," discusses age-neutral procedures, involuntary versus voluntary termination, the need to retain older faculty, and the role of academic tenure in the 1990s. An appendix offers dismissal procedure guidelines. Also included are a table of cases cited and an index. (JB)