The SE ToS state (term 1, 2nd paragraph, 1st sentence) that a subscriber to SE must be an individual. Context suggests that a "subscriber" means what it appears to mean: an entity that signs up, that gets a username, a user account. "Individual" needs no gloss.
Do moderators have the authority to disregard the (good-faith, clearly acknowledged, completely up-front) creation of a user account by a collective of (named) existing users?
If they don't, what should the response be when this occurs?
Draw the users' attention to the provision in the ToS, and close the collective account?
Wait until someone posts from the collective account and then 'go mediaeval' and ban the individual user who does so?
This case arose recently on Puzzling, and the sequence of events that followed culminated in the banning of the top user for a year. At no point has the above provision in the ToS been officially referred to.