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Ironically, during my mock trial competition this weekend, half my team decided to drink and one student got arrested. I did not drink, I did not get in trouble with the police, yet my school is giving the 25 person , two teams, sanctions for being in the presence of alcohol even though I am only 20 years old and not capable of buying it. Basically I am getting screwed for nothing.

My question is in two parts, First if this is on my transcript will it be a death sentence for T14 schools

Second is, should I pursue legal action since I committed no crime and did nothing wrong yet am being punished for it.

Yes so ironic mock trial team gets in trouble....also our team is now banned for the rest of the year and possibly next

No and no. Just write an addendum and explain the situation WITHOUT whining. If you have the numbers a drinking violation won't sink you.

Not enough details to give any real advice. That said, I'd fight it; you don't have anything to lose by trying to get it off your record.