My school has a very strict policy. All thesis is run on some commercial program that checks for any kind of plagerism. As far as normal classes go most of the teachers are very strict. When I was TA for one of the c++ algorithms classes I caught two students who submited the same program, I knew who did the program because helped the guy debug it. Reported it to the teacher and he flunked one of the students.
IMHO any body who cheat in any way at the university level, should be very severly repremanded. Definitely any kind of such activity is not allowed.