Master Loot System:

There's a group leader, and that person has full control over loot distribution. Control could be limited to rare items, or all. This is usually used by groups who are not strangers, so that trust issues are a minimal concern. Usually there are rules set in place by the group or group leader to determine who is eligible for certain pieces of loot, and then when it drops those folks can cast lots, or roll, or whatever. Or sometimes there might be a DKP (Dragon Kill Points, google it if you need to) system implemented to determine who gets what based on their performance and attendance. The group leader can then distribute the loot based on the players' DKP score.

I like the idea of having a master loot system for times like this, but it should certainly not be the default option.