Law school exams are curved. Most people will know the material very, very well. You could say knowing the material well is necessary, but not sufficient.
I recall one school not allowing students who attempt to transfer to participate in OCI. I don't remember which school, anyone else remember?
you must be talking about OCI for 2L. Doesn't OCI for 2L take place after you know whether you have been accepted or rejected for a transfer? So I don't see why a school would prevent you from interviewing if you are unsuccessful in transferring. I have heard of cases where you are successful in transferring, in which case you would not be able to interview at your former school. I guess in those cases where OCI overlaps with transfer decisions, it would make sense for the current school to not want you to interview, because you could be gone in the fall. I wouldn't call this "retaliation" though.