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#1. Look at rule 9-3-e. This makes it a violation as soon as you place the ball down. The case play grants leeway to the offense and allows them to avoid the violation with a timeout.
#2. Legal.
#3. The key part of the wording you cite is "instead of a technical foul." The idea is a middle ground, as delaying the game would otherwise be a technical foul. 10-5-b
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