Low bar

I was talking to a particularly pesky partner at work today, pointing out some problems I found in their product. Their solution was that the problem existed in previous versions and didn't need to be fixed in the current version. What? Isn't that response dopey? They were suggesting in so many words that they had already set such a low bar for their customers in terms of quality that letting the problem fester in the current version would cause no grievous damage. I wonder how this company manages to be in business. Sad thing is that we are stuck with this partner thanks to some decisions that were made before my time.