I think I recall that a drop was an automatic fail as well. (This was back in '83.) In my class there was an older woman, likely in her early 60's, who wanted to learn to ride in case her husband ever had any medical problems while they were traveling the US on their Wing. Problem was, the woman had never even learned to ride a bicycle. After a couple passes across the parking lot with the woman wobbling on the bike and three instructors with her (one pushing, two on either side of her), they politely suggested she learn to ride a bicycle and come back after she had some experience.