In business schools across the United States, one of the most common pedagogical tools is the use of groups and group projects. "Passive" instruction (i.e., lecture only) is considered to be an inferior mode of teaching. In this article, the author suggests that the use of group-based projects as pedagogical tools should be reconsidered. Although the problem of free riding in group projects in the real work environment may be mitigated by other factors, free riding in a classroom can result in higher grades for the relatively less motivated students at the cost of lower grades for industrious students. (Contains 4 tables.)