Advocates for minority students charge that special education placement of racially or culturally different students is unfair because the tests, standardized on white, middle-class children, do not accurately reflect the learning rate or potential achievement level of others. For this reason, reliance on IQ tests for placement of minority children in special education has been challenged in the courts. The purpose of this chapter is threefold: (1) to review the court cases that have challenged the use of intelligence or aptitude tests as a basis for special class placement of minority children, especially placement into programs for the educable mentally retarded; (2) to analyze the two best known recent decisions, "Larry P. vs. Riles" and "Parents in Action on Special Education (PASE) vs. Hannon"; and (3) to indicate which of the cultural and racial bias issues raised in the various cases have been resolved and which continue to elude resolution, awaiting further developments. Although the judges in "Larry P. vs. Riles" and "PASE vs. Hannon" came to conflicting verdicts with respect to cultural bias in IQ testing, the authors conclude that both are important benchmarks in the continuing evolution of court rulings, since both affirm that overreliance on IQ testing without regard for other data is likely to be discriminatory and violative of due process. (TE)