My college did, once. Well, one teacher did on the semester before I graduated. We had been given a final paper to write and the topic was law enforcement (I'm a CRJ major) and how has our time here and other outside experiences influenced us one way or another. I forget the topic exactly, but that's the general idea. It's unimportant anyway. The paper could be sourced through any means, including our own personal experiences. In fact, we could base the whole paper on personal experiences, and since my father, grandfather and many of family members our actively or retired from the practice, I thought that would be perfect since I had a lot to talk about on the subject.
So, I write the paper, turn it in, receive an F and a "See me" on it. At this point, I had an A- in the class, so failing wouldn't keep me from graduating, but I was still furious nonetheless. I visit my teacher the following day and he claims that, because I had no cited references, I effectively plagiarized the whole thing. The fuck? Since I used only my own experiences (and nothing else), I did not need them. This is obvious and the option was clearly spelled out on the paper's guidelines too. I was stunned.
I was furious and went off on him, threatening to my department's head because he was essentially going to keep me from graduating because of a fake plagiarize claim. I already hated this man and now I wanted to throw him out the window. Long story short, I called his bluff, used the paper's guidelines as proof that I was correct and if he didn't change the grade on the paper I was going to file a complaint and take him to the dean for our CRJ department. He gave me a "C-" and that dropped my grade to a "B". Fuck him and my college. I hated that place.
At least I graduated!