Themes in 1989 higher education case law reflect the difficulty in reducing the federal deficit, increased service demands on state budgets, and an economic condition of marginal growth. The interpretation of constitutional rights in relationships between the institution and students, employees, and communities continues to be heavily litigated. Cases dealing with contracts, copyright, patents, and antitrust prohibitions point to the growing business-university relationships. Cases discussed in this chapter are organized under seven major topics: (1) intergovernmental relations; (2) discrimination in employment; (3) faculty employment; (4) administrator and staff termination; (5) all employees; (6) students; and (7) liability. (MLF)