Loot is simple when a mob die, a random person can loot out of it, if the item on it is a good one, (aka rare or more(for FFXI language)) then it pop a windows asking loot or pass.
And everyone in the PT use loot or pass, (with a 15sec timer) after the timer passed or everyone choose to loot or pass well the item goes to the highest bidder, if all passed item is destroyed.
Of course there is some kind of greed, like in my Party i had a Templar looting Chain armor because he needed money, and he used the noob sentence, (if i can loot it why would i pass). So he took it instead of passing to someone who could equip it and have a better use of it like me or the chanter in our group, but meh greed is a part of everygame.
The good knows is when you have a friend in PT, to help you win lot then trade you the item, so you can equip if you lost the lot with random noobs.
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