My first year at Caltech, where almost all exams are take-home exams, I was in trouble. I'd spent way too much time at the computing center hacking, and at the end of second quarter I'd had to petition to be allowed to stay. I was allowed to stay on the condition that I pass everything third quarter.
I flunked the final exam for physics. I knew I was flunking it as I took it. I also knew EXACTLY where in the book the one bit of information was that I needed to pass that exam was. All I had to do was reach over a couple of feet, in my private, closed room, and spend 30 seconds in the book, and all would be well. But Caltech was on the honor system, and the instructions on the test said closed book, so I flunked and was kicked out.
(I then spent a year at a community college, acing everything, to show Caltech that I could actually do college work if I tried. They let me back in, and enough of the credits from the community college transferred so that I was able to come back as a sophomore. I still ended up spending way too much time hacking, but ended up with a B average at graduation).