When you're in a party with other players, is loot shared or does everyone gets his own drops? If it's shared, is it free-to-take for everyone, or only for person that landed a killing blow, or perhaps the person who attacked the monsters first.
All party members can see all of the drops. The drops (at least the non-junk stuff) can be flagged with one of the party member's names when it drops. The player that is flagged on the piece of loot has approximately 3 seconds to loot it before anyone can loot it.
Each loot item will appear, in the world, with a timer bar and the flagged person's name. If it's not flagged to you then it appears in a faded-out color (until the timer expires).
Here's a screen shot showing the timers:
I snagged the screen shot from this video.