I think I read in some other post on this board that many law schools will consider an Undergrad class average GPA of greater than 3.2ish meaning that your school inflates GPA's. So maybe they would take that into consideration.
Otherwise, the law schools can look at how well the average test takers from your undergrad performed on the LSAT as another marker of how good your school is. So i heard something like if test takers from your school averaged 157 or more, then it was considered a competitive school.
I could be talking garbage, but hope this helps.