Here are a few quotes from the most recent issue of Wine Spectator, which has a large article on beef this month:
"...Beef certification doesn't guarantee quality, nor does terminology such as 'rancher's reserve,' 'butcher's prime' or 'market choice'. These are all supermarket terms for beef and have no direct link to quality."
"...The quality grading of beef is primarily based on the degree of marbling. Grading isn't done on the entire carcass, however, only on the amount and distribution of marbling in the rib-eye muscle when the carcass is cut between the 12th and 13th ribs.
"There are six grades of beef: prime, choice, select, standard, commercial and utility, in decending order of quality. Standard, commercial and utility are not typically sold directly to consumers, but make their way into food service items and canned goods.
"...Prime and choice grades each contain three subcatagories, which indicate the degree of marbling...Select contains two grades, the higher having a slight degree of marbling, and the lower even less."
"...Just because a steak is graded prime, however, doesn't mean that it will taste better than one graded choice. For one thing, the prime steak might be from the lower end of prime and the choice steak from the upper end of choice. In addition, the prime steak could be from a younger animal, say 18 months, which has less muscle development than a 22-month-old steer graded choice. Good muscle development is a significant flavor factor in beef."