Unfortunately, they're not P/F. They do the Honors, High Pass, Pass, Marginal (Conditional) Pass, Fail.
I might not be completely correct, but it's something along these lines. According to the students, though, it's a really cooperative atmosphere. No one seems like they're out to top everyone else, etc...
generally, 70% and above passes regardless of how the curve falls. A high pass is anything above the class average, and honors is one standard deviation above the average. The 70% is fixed...so anything below is failing and anything above is always passing. The average dictates the rest.
As a student, I can say the grading really doesn't cause any unnecessary competition, though, and for the most part, the grading isn't even something we think about or talk about.