ok, i went back and read the whole thread - my curiosity got the best of me.
i'm glad tammy brought up the Juan Carlos example - I was racking my brain trying to think of anywhere in teh rules we say a vendor CAN'T respond to a review - and I couldn't come up with one. That's because we don't have that rule! This forum tries really hard to be open and honest, which is one reason we allow vendors on here. We do ask that they follow certain rules (mainly no spamming or advertising!), but they're allowed to speak their mind and voice opinions. We value that as well.
So, she is more than allowed, she's encouraged to come and post her response to your review, as long as she is respecful and follows the rules.
Ironically, it's not the review that I see hurting her business, it's her reaction to the review.