Various legal issues associated with teacher evaluation and significant court decisions are summarized in this handbook. Three major legal issues are defined: (1) failure of the school district to follow due process when terminating tenured and non-tenured teachers, or when abolishing positions; (2) discrimination in employment and promotion, or failure to comply with affirmative action legislation; and (3) improper use of tests (particularly, the National Teacher Examination), or use of invalid, unreliable criteria for hiring and evaluating teachers. Summaries of 27 court cases are presented which cite landmark decisions and indicate recent legal developments which relate to the three major issues. These cases are not restricted to actions involving teachers. Several legislative acts are also summarized: the first and fourteenth amendments of the United States Constitution; Title VII of the Civil Rights Act of 1964--Equal Employment Opportunity; Equal Employment Opportunity Commission guidelines; Federal Executive Agency Guidelines on Employee Selection Procedures; Executive Order No. 11246; Title IX of the Education Amendments of 1972 (Higher Education Act); and Rehabilitation Act of 1973. Eighty-five bibliographical references are listed, and a series of workshop exercises are presented. These group exercises are designed to accompany a film, "The Rosedale Three." (GDC)