Commentary and advice in four legal areas are offered in this newsletter on educational law. First, the document outlines preventive legal review for public educators in four basic steps, including anticipation of legal challenges, evaluation of the challenges' legal merits, consideration of the policy issues raised by potential challenges, and modification of policies in response to the first three steps. Second, the authors briefly note a new suit against North Carolina's competency testing program. Third, the newsletter devotes considerable space to the legal ramifications of family choice in education. It discusses three choice plans (the free choice, free transfer, and tuition voucher systems) in relationship to desegregation and racial imbalance, describes several states' statutes regarding racial discrimination, and recommends guidelines for a constitutionally acceptable tuition voucher plan. Finally, the document examines the Larry P. v. Riles decision on racial bias in intelligence testing, covering the trial judge's analysis of discriminatory intent, the plaintiffs' remedy, and the defendants' appeal. (RW)