To accommodate the ruling in Hopwood v. Texas banning any use of race in school admissions, the State of Texas passed a law guaranteeing entry to any state university if a student finished in the top 10% of their graduating class. Florida and California have also replaced racial quotas with class rank and other criteria. Class rank tends to benefit top students at less competitive high schools, to the detriment of students at more competitive high schools. This effect, however, may be intentional since less-funded, less competitive schools are more likely to be schools where minority enrollment is high. Critics argue that class rank is more a measure of one's peers than of one's self. The top 10% rule adds racial diversity only because schools are still highly racially segregated because of residential patterns. The class rank rule has the same consequence as traditional affirmative action: opening schools to students who would otherwise not be admitted had the given school used a holistic, merit-based approach. From 1996 to 1998, Texas had merit-based admission to its state universities, and minority enrollment dropped. The state's adoption of the "top 10 percent" rule returned minority enrollment to pre-1996 levels.

What did the ruling in Hopwood v Texas set a precedent for in terms of admission policies?