Most professors use the Socratic method.
In the second and third year there are excellent opportunities to focus on both theory and practical study. Students can get credit for clinical work and take classes from a variety of highly successful practitioners. Also, there are excellent opportunities to take highly theoretical classes and classes which largely review and focus on scholarship. It certainly helps that Chicago has such esteemed faculty members. Further, law students can take classes in any other department at the University of Chicago--many have taken classes at the business school, graduate school of economics, as well as schools like public policy and undergraduate programs.
Grading is on a scale based from 155-186. The median, for curved classes, is 177. I have found that getting away from the 4.0 scale has encourages a focus away from grades and more towards learning. Because few employers understand our grading scale, grades don't matter as much. I don't know what grades most of my colleagues, and even close friends, receive. Everyone I can think of has the job they want--whether it is a clerkship, big firm job, or public interest. As a result, there is no reason to be competitive. I find that most students are primarily competitive with themselves. Interpersonal competitiveness based on grades is not socially acceptable at Chicago. Grades are seen as superficial and really more of a tangential aspect of legal education.