Here is what A Practical Guide to Legal Issues Affecting College
Teachers says:

"Today, courts recognize that when a student pays tuition for a
college education, a legal contract comes into being. The student has
contracted for an education as advertised by the institution in its
catalog and by its representatives. Some like to think of the student
as a consumer of education, and an institution as a supplier of a
product called education. The consumers is entitled to receive what
was paid for. The old days of in loco parentis have been replaced by
the law of contracts and the concepts of consumerism. This contractual
relationship implies a property interest which also triggers
constitutional guarantees at public institutions."
...

"Teacher As Agent of Institution

When a teacher is acting within the scope of his or her employment, a
teacher generally is viewed as the agent of the institution. A
teacher's acts, then, are considered to be the acts of the
institution. Thus, a teacher's acts can form the basis for liability
of the institution. For example, if a teach of history refuses to
follow the syllabus for a history course and insists on teaching more
writing skills than history in the course, a dissatisfied student may
sue the institution as well as the teach for breach of contract of
enrollment."

"Sources of Legal Rights and Responsibilities at Public and Private Colleges 
[... Constitutions ... Statutes ... Contracts ...] 

Policies of Governing Boards

Policies of a board of trustees or board of regents usually set forth
the mission of the college, student admission and graduation policies,
and personnel policies. The policies become implicit and often
explicit terms of the teacher's contract or the student's enrollment
contract.

Handbooks

Student, faculty, staff and other handbooks contains the more detailed rules
and regulations that implement the basic policies set by the governing
board. These rules and regulations also become part of the contracts relating 
to teachers and students.

[... Professional Standards ... Custom and Traditions ... Duty and
Reasonable Care Under the Circumstances ...]"

...

"Institutional Liability

[...]

Institutions may be solely liable where there is a breach of the
student contract of enrollment, as where courses advertised in the
catalog are not offered, or where students are suspended or expelled
for misconduct without proper due process."

...