In 1995, Jennifer Gratz was denied admission to the University of Michigan’s undergraduate program, and a year later, Barbara Grutter was rejected by the University of Michigan Law School. Both plaintiffs argued that their academic credentials and extracurricular activities should have awarded them a spot at the University. They claimed that they were subjected to a form of reverse discrimination due to the university’s affirmative action policies.

In 2003, the U.S. Supreme Court ruled in the Gratz v. Bollinger case that the point system used by the University of Michigan for undergraduate admissions was unconstitutional. The admissions policy was based on 150 points, and it awarded points based on factors such as race (20 points), athletic ability (20 points), depth of essay (up to 3 points), leadership, service (up to 5 points) and personal achievement (up to 5 points).  

The Grutter v. Bollinger case was also decided in 2003. In a 5-4 vote, the U.S. Supreme Court narrowly upheld the University of Michigan Law School's consideration of an applicant's race to achieve a "critical mass" of underrepresented minorities, the Supreme Court also noted: "government use of race must have a logical endpoint.” The law school was found to use race as a “plus” factor only, as one of a variety of positive admissions qualities. Such efforts did not violate the Equal Protection Clause because they narrowly considered race based on a compelling need to obtain educational benefit from diversity and, unlike in Bakke, the policy did not outright exclude any group or "preserve" a certain number of positions - the defamed Quota System - on the basis of race alone.

The Gratz v. Bollinger and Grutter v. Bollinger rulings are regarded as the most important since the Bakke decision. Most colleges and universities had previously followed the guidelines set forth by Bakke, stating that diversity is an integral component of a successful institution. The Supreme Court's decisions in the landmark University of Michigan cases clarified this grey area and provided definitive guidance for affirmative action policies.