The law can become involved in graduate medical education in several contexts: (a) when applicants are denied admission to residency programs; (b) when residents are dismissed from programs; and (c) when residents, hospitals sponsoring residency programs, or attending physicians are sued for malpractice. A knowledge of the rights and responsibilities of residents, hospitals, and attending physicians is crucial if they are to avoid unnecessary litigation. The authors here review the law in this area and recommend guidelines to be followed by those areas of graduate medical education.