Do you use "Lies" as money to buy happiness and peace in your relation?

Most of us speak lies at different times. Many lies may be aimed just to make someone feel comfortable or good. But most of us have or are using lies to make our life easy. Do you remember any incident when you intentionally lied to your good friend, wife or husband, you can share your story. Please include answer to these question in your response:
1. What do you think lies are inevitable? Do you think it is impossible to live with only truth?
2. How much lying is acceptable in a healthy relationship?
3. How one should react when you caught someone lying or your lie has been exposed?
4. Important : How to avoid habit of lying to someone who love to listen only lies? When truth is not accepted, how to avoid telling lies?
5. On scale of 1 to 5, where do you keep yourself on basis of your acceptance for truth about you?
6. Do we all have a misconception in our minds that we are considered as a good person among people who know us in real or virtual life? Do we think we are honest and do not accept lies or tells lies to anyone?
I am thankful to all the members who are going to pay some thought to answer my questions asked in this thread.
TOW entry for 27 Nov to 3rd Dec