Earlier quoted context omitted.
Yes, I think you're looking at the wrong terms of service; you're looking at their ordinary end user terms of service, not their educational terms of service. The educational terms of service, http://www.google.com/apps/intl/en/terms/education_terms.htm... say: > 12.2 Limitation on Amount of Liability. NEITHER PARTY MAY BE HELD LIABLE UNDER THIS AGREEMENT FOR MORE THAN THE AMOUNT PAID BY CUSTOMER TO GOOGLE DURING THE…
I wonder if UC Berkeley is confusing "confidential obligations" with "confidential data". It doesn't seem like google is saying, "if we lose an email, and it costs you a million dollars, we're liable for it". From this section: "Confidential Information. 5.1 Obligations. Each party will: (a) protect the other party’s Confidential Information with the same standard of care it uses to protect its own Confidential Infor…
It is talking about "confidentiality obligations", not "confidential obligations." That is, obligations to keep information confidential, not obligations that are themselves confidential.
And below, they define confidential information clearly:
'"Confidential Information" means information disclosed by a party to the other party under this Agreement that is marked as confidential or would normally be considered confidential under the circumstances. Customer Data is Customer's Confidential Information.'
They explicitly state that "Customer Data is Customer's Confidential Information." They are indeed saying that if they release the contents of an email, and it costs you a million dollars, then they are liable for that.