"did Pettittee negotiate in good faith"
Is there any doubt at all about this?
Either you think Pettitte's guilt has absolutely zero impact on his value to the Yankees, that their assessment of his performance accurately discounted the portion of the performance that came from the dope, and that their contract offer took into account the reduced value to the organization of having him represent it, and that the Yankees would have offered him the exact same amount even if they'd known the truth about his cheating, or it should be painfully obvious that he did not negotiate in good faith.
When you withhold material facts, by definition, that's negotiating in bad faith.