Honesty In Business

I read the article bellow today and wondered is there room for truth in business?
From Shark Tank: Switcheroo

This organization has thousands of PCs spread across 20 locations. And when there's an opportunity to replace lots of legacy applications with a single, unified solution, it sounds pretty good, says a pilot fish on the scene.
"We install the product, get the users trained, migrate our data and are up and running like clockwork," fish says. "Then the odd things start to happen.
"The application has sudden little freeze-ups and drop-offs on the network. Just the one app -- everything else on the PCs works just fine. And it's not all at once: one here, two over there, but never a whole bunch at one point in time to indicate what it is that's causing the problem."
Fish and his cohorts start troubleshooting. They rebuild PCs and servers from the ground up. They strip out all unnecessary software. Still the hiccups continue.
Clearly, it's the new application. The new app's data is being transmitted via TCP/IP, and none of the other IP-based software is having problems. And the new app uses its own proprietary IP stack instead of a standard model. That, fish figures, is the likely culprit.
So it is that fish finds himself sitting in on a conference call with the software vendor. Nearly two-dozen IT staffers are in the conference room, and just as many are on the call on the other side.
"We go over all of the factors, everything we have done to monitor and track the issue, and inform them that we believe there may be a flaw in their product," says fish.
"The engineers from the vendor completely avoid our hypothesis and come up with one of their own: Our network switches, for some reason, are choosing to drop just their packets and are thus causing the problem.
"Their solution: Replace all of the switches.
"The silence in our conference room is deafening. Then we tell them we'll take that under advisement, and end the call.
"Two weeks later, there's a new release of their client software. We distribute it to users. Suddenly all of our problems cease.

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What would have happened had the company openly admitted the issue and worked with the client to get the best result? Most likely they would have solved it faster and grown a strong partnership together. I know I would have purchased again from a company that listens and works with me. Too often in life we hide worried about what people will think when honesty would be best. If you make a mistake get ove it admit it and move on everyone makes them and will accept yours if you stand by them!