Because of concerns about the validity of tests used in education and employment, a consultation on June 16, 1989, focused on tests of ability, achievement, and other skills. Invited experts were asked to address a set of issues common to both education and employment testing, primarily related to test construction procedures and how to establish validity. This report contains a background paper identifying key issues, a condensation of the transcript of the consultation, papers written by the panelists, and a summary of their positions with analyses of areas of agreement and disagreement. The papers are: (1) "A Sociological View of Aptitude Tests" (James W. Loewen); (2) "Judging Test Use for Fairness" (Nancy S. Cole); (3) "Bias in Educational and Employment Testing: Selected Issues" (Lloyd Bond); (4) "Standardized Testing: Harmful to Civil Rights" (D. Monty Neill); (5) "A Legal and Policy Perspective" (Clint Bolick); and (6) "Tests Are 'Useful Servants,' Not the 'Masters of Reality'" (Barry L. Goldstein). A major conclusion of this report is that properly designed tests can be used improperly in ways that are unfair and that bias interpretations made of test scores. Standards for test development and use should be set with some form of public involvement. Appendixes provide background on federal guidelines, legislation, and legal issues of test construction. There are three tables and a glossary of testing terms. (Contains 79 references.) (SLD)