I've never seen that practice done in any of the schools that I've either been a part of, nor any schools in which I've been to for seminars, camps, etc, and have talked with the inst about his dojo. I mean, think about it...it's a sad reality that many places want to keep people happy, at all costs. Would you rather have someone be told that they can apply for a test when they feel that they're ready, or....that they have to be given the ok by the inst, regardless of whether or not they, as the student, thinks they're ready?
In the end, just like with anything, it's the person that's under the spotlight, that'll have to live with their shady actions. I know who I train with, and thankfully, it's not like that.