Strongly disagree. It’s something that happens all the time, and it should; where someone went to school is as important as what classes they took and what grades they got. Admissions officers keep lists of schools and have systems that help they rank those schools, so that someone with a GPA of 3.1 who comes out of a school where the “gentleman’s B” is in effect isn’t rated the same as someone coming from a school where the average grade is actually a C.
Please don’t confuse my attempt to clarify the legal matters with support for any particular side, or ascribe views to me that are not part of my comments. I don’t think where one goes to school or how much money someone pays should lead to automatic advancement. I was simply saying that one school’s reputation might be evaluated one way, the other school’s is evaluated differently. Which one is considered the higher quality education, I have no idea. I certainly hope it’s the “pay what you want” school, not the expensive one.
I think the institution could claim a loss of reputation and value based on the confusion without suing on behalf of its pupils. If parents don’t see their children getting in to good colleges, and getting good jobs, they’re not going to be willing to spend $40,000 a year for their kids to go there.