This chapter on higher education returns after a 6-year absence during which time a separate yearbook on higher education law was published. Because not all higher education law cases reported during 1981 could be included, the author summarized only the more significant cases that seemed to best illustrate the legal parameters regarding the specific topic. The cases are organized under governance and finance, liability, employees, collective bargaining, and students. Cases involving employees concern First Amendment rights, alleged discrimination, elimination of tenure, reduction of salary, and confidentiality of faculty evaluations. Cases involving students include freedom of expression, interpretation of statutes, rules and regulations, organizations, financial matters, admissions, athletics, religious matters, and handicapped students. (Author/MLF)