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In my experience, the answers are No and No.
Arbiter won't tell the official there's a conflict. I don't get the impression the assignor gets a heads up either, because this exact scenario has happened to me a few times. You'll just get an assignment for a window you blocked and you'll commence with the "wtf?!" face.
Then you contact your assignor and he explains the situation you just described. My assignor has been understanding about it since, until it's up there, it's not up there.
As for #2, if the answer were Yes, there'd be A LOT more turned back assignments!
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