Rules FAQ:
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Placing a character into play as a defender gets around any limitation on declaring defenders (e.g. The Knight of Flowers, Jousting Contest).
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If you win the intrigue challenge, you must choose whether to return Edd to hand or not before any reactions to winnins/losing the challenge can be triggered.
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Edd's ability is triggered while he is in your hand, so it is not affected by Fortified Position -- he enters play kneeling and defending, with a "bounce" delayed effect already attached.
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It's a character ability, so it can be cancelled via Treachery.
- You may put Edd into play as a duplicate, if you already own and control another copy of him in play. This will not make Edd the character participate in a challenge, and will not allow you to return the character to your hand if you win the challenge. You may return the duplicate to hand though.