UTILIZING A STRUCTURAL-ORGANIZATIONAL PERSPECTIVE, THE AUTHORS EXAMINE THE GENERAL IMPLICATIONS OF FORMAL RULE EROSION IN NARCOTIC LAW ENFORCEMENT, AND SPECIFICALLY FOCUS ON AMBIGUITIES AND PROBLEMS SURROUNDING THE ACTIVITY OF CASE-MAKING FOR NARCOTICS OFFICERS. ANALYSIS OF CASE-MAKING ACTIVITIES BY OFFICERS INDICATES THE MANNER IN WHICH FORMAL RULE EROSION IS ACCOMPLISHED AND WHY EROSION IS SEEN AS NECESSARY. IN ADDITION, ANALYSIS REVEALS HOW INFORMATION ABOUT INFORMAL WORKING RULES AND THEIR APPLICATION IS CONTROLLED AND 'SLIPS' AND 'ERRORS' HANDLED SO THAT SIGNIFICANT PUBLICS DO NOT BECOME KNOWLEDGEABLE OF THE DISCREPANCIES BETWEEN THE LAW AS STATUTE AND AS ACTION. FINALLY, ANALYSIS INDICATES HOW ALL TRADITIONALLY DEFINED AREAS OF CORRUPTION, BRIBE TAKING, USING AND SELLING DRUGS, REVOLVE AROUND, AND ARE CONDITIONED BY THE ACTIVITIES OF CASE-MAKING. THE IMPLICATIONS OF THIS PATTERN ARE DISCUSSED AS THEY RELATE TO THE REGULATION OF ECONOMIC MARKETS IN GENERAL. (AUTHOR ABSTRACT)...MSP