This publication looks at the effect of the law on preschool programs conducted by nonpublic agencies. In the first chapter, a distinction is drawn between day care and preschool. The second chapter deals with sources of the law that are applied to preschool. Canon law affects Catholic schools. Catholic schools, as well as public schools, are subject to four types of civil law: (1) constitutional law; (2) contract law; (3) federal and state statutes and regulations dealing with issues such as sexual, racial, and handicapped discrimination; child abuse; and police and criminal checks; and (4) common law. The third chapter concerns legal issues for the preschool involving tort law. Tort suits in schools are generally of four classes: (1) negligence, which requires that a duty exists; that a violation of duty occurred; that the violation was a proximate cause of injury; and that injury occurred; (2) corporal punishment; (3) search and seizure; and (4) defamation of character. The fourth chapter notes that preschool parent handbooks should address issues such as the preschool philosophy and objectives, admission and academic policies, the discipline code, field trips, health and safety, emergency procedures, considerations concerning noncustodial parents and other relatives, and parents' signed agreement to the provisions of the parent handbook. A bibliography of 14 items, and a list of unpublished preschool materials, are included. (BC)