The lawsuit originally was filed in 1997, when Barbara Grutter, a white applicant, was rejected from UM-Ann Arbor's law school.
She and others have laid claim that they were discriminated against because less-qualified minority students were admitted based on race.
The case was struck down in May by a sharply divided 6th U.S. Circuit Court of Appeals, which ruled that UM-Ann Arbor could employ affirmative action in its admissions policies.
Because of the case's national importance, it is not surprising the Supreme Court decided to take it up, said Jonathan Alger, assistant general counsel for UM-Ann Arbor.
Alger added that university officials think the school has a strong case in support of its admissions practices. "The university is defending this so strongly because diversity is a matter of educational quality."
Jerry Lucido, UNC's director of undergraduate admissions, said the Supreme Court's ruling will set a standard for schools across the nation for years to come.
"I think there's no question that every admissions office in America will have to look at their policy depending on what the Supreme Court rules," he said.
"One thing's for sure -- we should have a definitive law of the land."
Some experts see the case -- which could impact both public and private universities -- as an important step in solidifying race as a valid consideration in admissions.