A summary of the last week's major news and sports events in Northern Virginia: News:

The Ford Motor Company agreed to pay $350,000 to settle a lawsuit alleging that a chronic bone condition of 6-year-old Jordan Vance Bartholomew of Falls Church was triggered by an accident involving design defects in his mother's 1973 Lincoln Continental.

Arlington teacher Kathy Houston was reprimanded and removed from her third grade classroom at Taylor Elementary School following complaints that she ordered some boys in her class to strip to their underwear earlier this month in a search for stolen items. See Page 1 of The Weekly.

James Q. Stevens, bursting into tears after telling a Fairfax County Circuit Court judge he was "out of my mind" when he took 10 people hostage at Lake Braddock Secondary School last November, pleaded guilty to three counts of abduction and one firearms charge in connection with the incident.

In the Virginia General Assembly (which concluded Sunday):

* An agreement was reached on a budget that would restore more than 90 percent of the cuts in public education aid proposed by Democratic Gov. Charles S. Robb.

* A so-called "natural death" bill that gives terminally ill people the right to order that their lives not be prolonged by artificial means received final approval from the House of Delegates by a vote of 60 to 37. Earlier, the bill squeaked through the Senate by a vote of 21 to 18.

* The House gave final approval to legislation that will raise the state's beer-drinking age to 19, despite pleas by some Republicans that it should reject the compromise recently approved by Gov. Robb.

* The House approved a conflict of interest measure that would shield local officials from prosecution if their dealings were sanctioned by local government lawyers. The measure also would prohibit local governments from enacting more stringent conflict laws.

* For the first time in several years, House and Senate Democrats deadlocked over the nomination of a judge to the Virginia Supreme Court, creating the possibility that the legislature would forfeit the politically sensitive appointment to Gov. Robb.

* A House committee killed a Senate-passed bill that would have allowed officials to jail juveniles who are not charged with any crime, but who run away from home, do not attend school or otherwise get into trouble.

U. S. District Court Judge John H. Pratt in Washington said he would set new deadlines for desegregating public colleges and universities in Virginia and 11 other states.

A 17-mile stretch of the Blue Ridge Parkway in Roanoke was opened to snowmobiles, capping an eight-year lobbying campaign by members of the "Snow Seekers" club.

The Alexandria School Board approved a $49.4 million budget request that provides for a 3 percent increase in employe salaries. The action reversed an earlier decision to include enough funds for a 4 percent increase.

The Arlington School Board adopted a $51.5 million budget proposal that includes 3 percent salary increases for employes who had requested as much as 11.6 percent in raises.

Loudoun County's controversial Sheriff Donald L. Lacy, who remained in office despite a special grand jury's call for his resignation last year, announced he will not seek reelection this fall. Sports:

W. T. Woodson High School won the AAA Northern District girls basketball tournament championship and won the AAA Northern Region girls and boys combined swimming and diving championships.

The Cavaliers' third-ranked basketball team (22-1) defeated fourth-ranked T. C. Williams High School (18-5) 56-50, as Lorraine Rimson scored 19 points. In swimming and diving, the Cavaliers, the defending AAA state champions, won three events and scored 473 points. Lake Braddock High School was second with 294 points.

Freshman Cherie Tester and sophomore Lisa Zucker combined for 34.35 points of 52.25 total points as Lake Braddock High School won its second Virginia AAA girls gymnastics tournament title in five years.