Practice in academic libraries is to work with the faculty member on access and availablity issues, copyright clearances, and application of “fair use” principles. Books on course reserve are typically limited to those students in the class, and are only available to the students under prescribed limitations. An example of a library approach can be found at http://www.utsystem.edu/ogc/intellectualProperty/rsrvguid.htm

It may be, depending on the quantity and intended use. See “Copyright Notices for Supervised Library Copying: Updated Information for Library Services” at http://www.copyright.iupui.edu/super_copying.htm