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Student governments propose crazy stuff all the time. If colleges could be sued for millions each time some dumb, power-hungry 20-year-old decides to make a statement, the lawsuits will never stop. At best, you could say it's an advisory organ. Unless something is coming from the office of the president, provost, or a dean, I don't see how you can count it as officially representing the college. Fair point about the college not rebuking those acts, but again, student governments do stupid stuff all the time. Not enough time to rebuke all of them.
You don't need to rebuke all of them. Just the ones which aggravate or discommode the university. And schools routinely kick their student governments in the teeth all the time when they've managed to do so. The time to kick these guys in the teeth came when the lawsuit got filed, if not before. Oberlin signally failed to act to mitigate or reduce their liability. And it did exist there because student governments are routinely used and recognized to represent the school in all kinds of ways. As I said, they're pretty near the bottom when it comes to official organs but they remain an official organ