That makes the point of grading a student's result senseless. I don't even mean the 'boycott' but that Froehlich adapts the grades to the highest received. That would mean if everyone is lazy/stupid they'll all be evaluated better than they are. So why have a grading system in the first place if it doesn't enable you to compare results indepently.
(btw I would vote for a grade free teaching system anyways)