I was a judge's helper several years at the local fair. The judge was not certified, there wasn't any point system, and the rules were very informal. However it was true that the judge didn't have to award a first place in a category if none of the entries were worthy. There were a few times when not many quilts were in a category, and the best one had problems, so it got a second or third place ribbon at best. The reasoning was that a first place should meet a certain standard. Being in a category with few entries shouldn't guaranty a win.