A demerit was a mark given for misconduct or deficiency given to a person attending an educational institution or serving in a military organization. In the military of the Galactic Empire, the field corps operated a three-demerit punitive system, while the investigative branches operated a four-demerit system.
The demerit system was notably used at the Junior Academy of Applied Sciences on Lothal, and at the various military academies of the Galactic Empire. Sergeant Currahee, who served as a drill instructor at the Academy for Young Imperials on Lothal, was prone to awarding demerits. Demerits sometimes included an accompanying punishment. When Zare Leonis was given demerits at the Arkanis Academy, they came with instructions on his datapad to clean out the academy's diplopod stables twice that week after dinner.
Demerits were also used within the structure of the New Republic Senate.