Three things the kid did wrong. First, he violated a school policy. Second, he told someone else that he had the knife in his car. Third, he let them search his vehicle, and in fact disclosed that it contained the knife.

That said, the school's policy is inappropriate, and the Superintendent should intercede in this situation and fix this now. Given their public response, I doubt the superintendent has any intention of doing his job and helping this boy and fixing a ridiculous policy, and I should certainly hope the school district gets litigated for this.

It is unfortunate when those we put into places of public responsibility are either too lazy or incompetent to do their job properly, and resort to these sorts of "comprehensive absolutions" instead. Bad form.

This is why I tell my girls to keep their stuff with them and well hidden and keep their mouths shut. This gives others no cause to question them, yet preserves their ability to take care of their own interests.
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The ultimate result of shielding men from the effects of folly is to fill the world with fools.
-- Herbert Spencer, English Philosopher (1820-1903)