Actually there was another thread some time back about businesses not accepting currency/coins even though they are legal tender. I think the general consensus was it is legal for a business to not accept certain forms of payment if it doesn't want to.
This is similar to gas stations not accepting $50 and $100 bills even though they are legal tender.
As to these students getting 2-day detentions, that sounds unfair to me. I think it was a pretty creative protest from them. There may have been more to the story.
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