As a teacher for over a decade, I detest any form of dishonesty may it be in major or minor exams. I may have kid around my students about preparing cheat logs but that goes to say that they must be ready because teachers are aware of possible chances for cheating.
Teachers respond in varying ways when they caught their students cheating. Normally, students tend to chat with one another during exams and warnings are promptly given. But when these unwanted conversations persist, I could relocate the students to next to my table. Worse, I can stop them from taking their tests. Thus, before starting the test, I make sure that the chairs are physically dispersed, notes and bags are away, and house rules are set.
Students who are caught cheating are given failed exam grades, sent to the guidance counselor for counseling and parents are informed. Normally, I do chat with the student too, explaining the nature of his grievance and its consequences. Having done this, students can better understand their punishment and eventually appreciate your ways to correct them.