Has anyone ever beaten the game without getting any demerits? I seem to always get 15 demerits no matter what I do.

I am only on my second play, but I don't think it's possible since there are at least one or two occasions where Terk gives you demerits, and there's nothing you can do about it.

There IS a way to lower what you have racked up. I think I was above 20/25 and dropped it down to, I think, 15, but it wouldn't let me drop it further.

Update: on my second go-round I had 20 demerits and how have 10 but I did so earlier in the game. I may try again and see if I can lower it more....and if that doesn't work I might rack up a few more and see if lowering them will go below 10.

You can get it down to 5. Terk will automatically give you 15 demerits (it seems there's nothing you can do to stop it :( ), but Shawn will reduce his own demerits by 10, if you know how to get him to do it. But Shawn will only do it once, if you try again he will say "No, Terk will notice if I push my luck."