IT IS NOTED THAT TRADITIONAL CONFLICT OF LAWS QUESTIONS ARISE QUITE OFTEN FOR AN INTERSTATE TRANSIT AGENCY INVOLVED IN NUMEROUS TRAFFIC ACCIDENTS. IF A VICTIM OF ONE OF THESE ACCIDENTS DECIDE TO BRING SUIT AGAINST THE TRANSIT AGENCY, ISSUES OF CONFLICTS OF LAWS WOULD REQUIRE RESOLUTION ON SUCH ISSUES AS WHICH OF THE CONCERNED STATES HAS JURISDICTION, OR WHETHER THERE IS A FEDERAL JURISDICTION QUESTION? CASES ARE CITED TO SHOW THAT THERE ARE LEGAL PRECEDENTS FOR LEGAL ACTION TO BE TAKEN AGAINST THE TRANSIT AGENCY IN THE COURTS OF THE STATE WHERE THE ACCIDENT OCCURRED. THE NATURE OF THE PLAINTIFF ACTION, THE LIMIT ON DAMAGES, AND THE STATUTE OF LIMITATIONS WOULD BE DEFINED BY THE STATUTES OF THE STATE IN WHICH THE ACCIDENT HAPPENED. LEGAL ISSUES DERIVED FROM AN INTERSTATE TRANSPORTATION AGENCY SERVING MINORITY RESIDENTS OF TWO STATES ARE CONSIDERED. WHILE LEGAL IMPERATIVES ARE STILL UNCLEAR IN THIS AREA, IT IS RECOMMENDED THAT TRANSIT AGENCIES EMPLOY AN INDEPENDENT CONSULTANT TO STUDY THE DELIVERY OF SERVICES IN THE LIGHT OF COURT RULINGS IN EQUAL PROTECTION CASES AND TO DEVELOP A LEGALLY DEFENSIBLE BASE IN THE EVENT AN ACTION IS BROUGHT AGAINST THE AGENCY UNDER THE EQUAL PROTECTION CLAUSE. AN HISTORIC OVERVIEW OF THE LEGAL ASPECTS OF THE FORMATION OF INTERSTATE TRANSIT AGENCIES IS GIVEN, AND LEGAL ISSUES DERIVED FROM THE VARIOUS FUNDING SOURCES INVOLVED ARE CONSIDERED. IT IS PREDICTED THAT INTERSTATE TRANSPORTATION AGENCIES, LIKE REGIONAL PLANNING AGENCIES, WILL SOON FACE LEGAL CHALLENGES DESIGNED TO BRING THEM INTO COMPLIANCE WITH THE CONSTITUTIONAL 'ONE PERSON, ONE VOTE' PRINCIPLE. (RCB)