In market economy, I don't think selling the same product for higher price than other vendor should be considered dishonest. What a vendor provide is not just the tea itself, but also information, convenience of shopping and other accompanying products. Even for exactly same tea, different vendors may invest different money and efforts in storaging, which is extremely important for tea, and therefore may cause difference in prices.
Giving wrong information (like what we disucssed in another thread about teavana), is dishonest.
And I don't think there is anything wrong for selling lower grade tea. In most tea drinking countries (I mean where most of the population drink tea), most people are drinking and enjoying lower grade tea. Tea is not an elite berage, and I think manufactures and vendors should be encouraged to carry teas of different grades and price ranges.
Since hand vs. machine picking is mentioned somewhere in this thread (or another thread?), I believe, for oolong, hand picking is NOT important, and use of tools (including machine) is a blessing. Unlike green tea picking, hand picking oolong is extremely tedeous (if not painful). Therefore even in traditional agriculture, scissors are used as tools (which were not commonly used in most green tea picking). From time to time I see some oolong products labeled as "hand picked" and I personally am not willing to pay higher price for hand-picked oolong.
Anyway in many aspects of tea, there is no one single opinion that rules.