What Is The Line Between Truth And Dishonesty?

Three individuals were talking about a mutual friend.  One related how the friend had been struck by a car and had been killed.  The second said, "No, you are wrong.  That's not the way it happened at all."  Explaining, he told how that the individual had been riding in a taxi, and the taxi had been involved in an accident.  As the result the individual was injured and lost his life.