This paper uses case studies of culturally diverse exceptional learners to illustrate the impact of teacher expectations on the "accuracy" or "inaccuracy" of student self-concepts. In addition, innovative techniques that reduce stereotypic labels and enhance "accurate" self-concepts are discussed. Critical issues in teacher expectation are identified, including the use of traditional means of assessment for labeling and referring students to special education. Ten cases are briefly analyzed that illustrate misidentification of emotional disturbance, the fact that even minority teachers and principals can be uncaring, the need for school systems to find new ways of gathering and disseminating information to reduce the impact of "labels," and the weakness of schools in dealing with at-risk factors that confront students. Teachers are urged to value diversity, use a wide variety of assessment instruments and methods, and document student behaviors. Fifteen principles to reduce stereotypic labels and foster realistic expectations are listed, such as "there is no perfect human being" and "a problem behavior is not always a disordered behavior." (Contains 37 references.) (DB)