One of seven sections of a report that examines the assessment of occupational competence, this chapter provides a review of how the courts have responded to assessment practices. The difference in the perspectives held by the users and originators of assessment procedures and those held by the courts is developed by examining key court cases which followed upon the enactment of Title VII of the 1964 Civil Rights Act. In light of the courts' present posture, the implications of this difference in perspective are discussed for selection, licensing and certification, and educational assessment. The topics addressed include the use of the diploma or degree as a hiring requirement; the fairness of licensing and certification procedures as gateways to professions, with an emphasis on teacher certification; the use of IQ tests and other measures of general ability for classifying students; minimal competence assessment and the accountability of educational institutions; and the use of graduate school admission tests to select applicants fairly for the limited number of available places. The chapter concludes with a summary of the conditions under which the courts will tend to scrutinize competence assessment practices as well as suggestions for further legal research. (Other sections of the report are available separately--see note. The first is an overview; the last is a synthesis of issues.) (LRA)