Nurturing Little Newfie Cheaters

GDR "village teacher" (a teacher tea...Image via Wikipedia"Earlier this month, Eastern School District along the east coast of Newfoundland unveiled a new evaluation policy that said teachers should not give a student caught cheating a zero, but an “alternate appropriate assessment.” The student’s mark should be “derived from the second assessment” with no academic penalty for having been dishonest in the first place."
So,  we're penalizing the teachers instead of the students (by making teachers do extra work). And what's with the author's funny use of the term "bluff" as a synonym for cheat (see below)? Nothing wrong with bluffing on an answer, is there?
Newfoundland’s largest school board is “enabling students to cheat” with a new policy that requires teachers to let students caught bluffing on their tests get a second try with no academic penalty, the province’s teachers’ association charged this week in a complaint that echoes frustrations in other school districts across the country that are rethinking the way they discipline student cheaters.
PS -- It's OK to say "Newfie", I hope? No disrespect intended!