It has come to our attention that Amazon have been giving unclear and conflicting advice to school librarians who may have been wanting to loan Kindles to their pupils.  Amazon does not have a school purchase or loan policy in place, thus the agreement you accept is that for individual users.

The comment from Amazon - We currently don’t have any specific program or conditions in place for schools. The same terms of use apply to any Kindle content ordered on  Amazon.co.uk 
The relevant terms can be found here:
http://www.amazon.co.uk/gp/help/customer/display.html/ref=hp_left_sib?ie=UTF8&nodeId=201042540
Note that the clause entitled “Use of Kindle Content” only allows the customer’s personal, non-commercial use.  In addition the “limitations” clause does not allow to sell, rent, lease, distribute, broadcast, sublicense, or otherwise assign any rights to the Kindle Content or any portion of it to any third party. 

If you have previously had conversations with Amazon by email to check you are within the Kindle agreement please do recheck this as there is likely to be a programme of retraining of their customer advisers to make sure these sitautions do not happen in future.  Meanwhile, thank you to the school librarians who brought this anomaly to our notice.