Students pass or fail. Students subjectively assessed on what they know, can do, and what they are like. Performance based testing. Standardized testing is not used. Classes are ungraded - letter grades are not used.
All students eventually pass.
No one fails. Individual achievement encouraged. Honor Roll, Valedictorian, Salutatorian, etc. Individual achievement discouraged. Group grades are common with lowering of academic standards to lowest common demoninator.