IN A 1974 ARTICLE ON THE USE OF PSYCHOLOGICAL TESTING IN THE JUVENILE JUSTICE PROCESS, SUSSMAN ARGUED THAT INTELLIGENCE TESTS ARE DISCRIMINATORY AND CAUSE SERIOUS DISPOSITIONAL AND CLASSIFICATION ERRORS IN THE JUDICIAL PROCESS. THE MAJOR THRUST OF THE ARTICLE IS THAT THE ADMINISTRATION OF INTELLIGENCE TESTS TO CHILDREN AND THE USE OF TEST RESULTS AS EVIDENCE IN FAMILY COURTS DEPRIVE CHILDREN OF THEIR LEGAL RIGHTS AND SHOULD THEREFORE BE DISCONTINUED. TO EVALUATE SUSSMAN'S THEORY, AN INVESTIGATION WAS CONDUCTED THAT EXAMINED THE RELATION BETWEEN AN INTELLIGENCE QUOTIENT (I.Q.) SCORE BELOW 70 AND PLACEMENT IN STATE RESIDENTIAL SCHOOLS FOR THE MENTALLY RETARDED. DATA WERE OBTAINED IN 1973-1974 FROM A FAMILY COURT PSYCHIATRIC CLINIC IN A LARGE METROPOLITAN AREA. OF INTELLIGENCE TESTS ADMINISTERED TO 807 ADJUDICATED JUVENILE OFFENDERS, 33 PERSONS OBTAINED SCORES OF 69 OR BELOW. THERE WAS NO INSTANCE OF A RETARDED JUVENILE OFFENDER PLACED IN A STATE DEVELOPMENTAL CENTER. OF THE 33 PERSONS WITH SCORES OF 69 OR BELOW, 17 WERE REMOVED FROM THEIR HOMES AND 16 WERE EITHER PLACED ON PROBATION SUPERVISION OR RELEASED CONTRARY TO SUSSMAN'S THEORY, SLIGHTLY LESS THAN HALF (7 OF 17) OF THOSE REMOVED FROM THEIR HOMES BY REFERRAL TO THE NEW YORK STATE DIVISION FOR YOUTH WERE PLACED IN STATE TRAINING SCHOOLS. EIGHT CHILDREN WERE PLACED IN PRIVATE RESIDENTIAL SCHOOLS AND/OR FOSTER HOMES. INTELLIGENCE TESTING CAN BE PART OF A SUCCESSFUL PLACEMENT PROGRAM FOR RETARDED JUVENILE OFFENDERS. REFERENCES ARE INCLUDED. (DEP)