Should This Teacher be Penalised?

In an English class taken by a friend’s son, a seventh grader, late assignments are lowered by a full letter grade.

In an English class taken by a friend’s son, a seventh grader, late assignments are lowered by a full letter grade.

Last term, he handed in a paper. His parents saw him write it, his peers saw him deliver it, but his teacher, who previously lost one of his assignments, said she did not receive it. She acknowledged “the possibility of human error on either side” and so “split the difference”, lowering the grade half the usual amount, to a B instead of a B minus. Fair?

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arindam