...yeah, yeah, greener grass, i know.
To the school's credit, they responded as best they could. They considered each case, interviewed the students, and punished them on a sliding scale based on how much cheating, ranging from a zero on that one assignment up to suspension.
Then, for the next semester, they simply changed the rules. You were now officially allowed to cheat all you wanted on homework, but it now only counted for 5% of your grade. That was REALLY bad for people who weren't doing the homework, but it also sucked for people who were just lousy test takers.