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An acceptable use agreement is well, somthing that definines what use of somthing is acceptable.
In terms of NoCatAuth and free community wireless networks, this is a cover our butts move, so that the standard issue threat to the internet script kiddies, and purveyors of kiddie porn don't use our connections, get busted, and get US busted.
If you're reading this, you're online. Go read your ISP's policies for sharing bandwidth, or terms of service agreement, whatever they call it. This is a good example. Just what is allowed, what isn't. NoCatAuth makes sure they have to know this, before they can use the connection (it does other stuff to, but just as it pertains to this topic of course).
See also: AcceptableUsePolicy, IspWirelessPolicy