I don't know how hard it would be to implement this, but here's the idea:

You're in LoA or ST and just kill a boss. Each party opens their loot. You check the loot list. Ugh you already have this, or it's for a job you have no interest in leveling. You pass on the loot. So does everyone else.

As it is now, it would drop to the floor. What if instead, it got passed to the next party? A's loot goes to B, B's loot goes to C, and C's loot goes to A. It would only drop to the floor if all 3 parties pass on the item.