It is my understand that their ruling is incorrect. Per 10-2-2, Team B can keep the ball because it gained possession as you say with 'clean hands' as long as it declines A's foul. Team B's foul must be enforced so it's Team B, 1/10 at the 50.
If Team B accepts A's foul (which it does have the right to do), then they offset, replay down.
Now, what if A didn't foul? What are the options?
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