"...and an objective exam..."
A lot of college work is papers, not exams, so there is always some subjectivity to the scoring. I think just pre-determining that only 35% can get As is silly, though. Just another quota system, not a good, or fair, idea.
There are means to grade subjective work somewhat objectively; I won't pretend to know it, but I am aware that my law school professors try to use this method.
I agree. The criteria should be whether you are fit to do the job for which you are credentialed.