1. Is honesty always the best policy? Relate a plausible scenario where this might not be the case.
Honesty is the best policy except in emotional situations. I may not be emotionally involved myself, but I always try not to make some offhand superficial remark (no matter how relevant it might be) to hurt someone's feelings. For example, if a friend explicitly asks me how they look in a new outfit and I don't like it, I lie. However, the best way to avoid lies, though, is to say nothing at all. That's the course of action I take most often.
2. Are you someone of who can't say no? If you're not, tell those of us who are, how to overcome the yes syndrome.
I can say "no." Sometimes I wonder if I'm saying "no" too often. I think the trick is to think of yourself first. Be selfish.
