The concept of what the teacher is doing isn't new. Back in the 1970s, we had "contracts" in high school. The requirements for getting an A, B or C for the quarter were clearly spelled out, and you had to decide at the beginning of the quarter which grade you would try to earn. For an English class, a C would require a three-page paper, a grade of 80 or higher on 70% of your vocabulary quizzes, and an oral presentation. To get an A or a B, you had longer papers, high quiz grades, the oral presentation and one or more shorter papers. You could get a grade lower than what you contracted for, if the work wasn't good enough, but no matter how good your work, you couldn't get a grade higher than what you contracted for.
But the difference is that a) we were a few years older, b) we didn't need class time to do most of the work--the papers and such could be done at home, c) the things that had to be done in class--the teacher gave us ample class time and most importantly, d) we knew from Day One what we had to do, how to do it and when it was due.
The teacher needs help. I'd go to the principal and ask that she gets it. It could be that she was forced to use a system that is unfamiliar to her, but that means the school has to get her the right training. Because the education of every child she teaches shouldn't suffer.