PvP flag

[Ynir]

Can someone post a detalied explanation of the PvP flag? Why is it there? Can it be toggled? 

I notice that saying /pvp doesn't generate an error message, which means that it does something, but it doesn't toggle the flag.
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Thanks for the help.

Spangles (Alliance) beat up an horde NPC guard at the elevator in the Barrens. She then was stomped on by two horde players. Apparently her PvP flag was set by combat with an NPC.

Was it because the NPC was horde? Or does combat with absolutely anything set the flag?