Domain Legalities

Hypothetical question: Could a webmaster be sued for registering a domain and maintaining a website with the name of a college? Completely made up scenario: what if I wanted to register Duke-graduates.com or similar? If you said yes (and please explain why), what if the name of the college was more generic like the name of the city, like smallville-grad.com.

I know this stuff goes on all the time with video games and celebrity fan sites but that doesn't necessarily make it legal. Anybody got some good readin' links on the subject?

Thanks.