This bulletin, the third in a series on selected issues in day care, addresses two problems involving legal issues: (1) what are the implications for the day care program when parents or other legal guardians are involved in a dispute over the custody of children? and (2) what are the rights and responsibilities of day care programs when parents fail to pick up children at the end of the day? The discussion focuses in detail on how to develop a well though out plan which concentrates on preventing unpleasant incidents before they occur. Legal definitions of custody, divorce, separation, adoption, child abuse, and child neglect are given and strategies and procedures concerning verification of parents' rights to custody, and settlement of disputes between parents over child visitation at the center are discussed. The problem of late parents and liability of the center in caring for children after closing hours is discussed in terms of the issues of supervision, responsibility, authority, and suspected child neglect. (Author/SS)