It seems our school's way of doing tests is different from what I've heard about elsewhere. When we test, *most* people don't pass the the first try, especially all the way up to brown belt. On our last test for a green stripe, only one person out of about 10 or 12 passed right away. I'm not sure whether black belt candidates also go through testing and retesting, or whether they are expected to be more perfect.
Anyway, I don't know whether our system is good or bad. On the one hand it seems that we test *very* frequently, at least in the lower belts. We get good feedback about what we need to improve, and retesting and improving one's technique continues over the course of the next few weeks or sometimes months. So its certainly good practice for perfecting your technique, which is hard to do in a huge group during class. On the other hand, during testing, there is always this rise and excitement about testing, and then the fall of disappointment on not passing. I would think it kind of bums you out, time after time.