OPEN AIR TERRAIN:
If a character that can't use Leap/Climb, Phasing/Teleport, Flight or Great Size occupies Open Air Terrain after actions resolve, deal that character 1 unavoidable damage and then the character's controller places the character in their starting area.
2) THE RULE OF OCCUPANCY
Any effect resulting in two or more characters occupying the same square is prohibited. Any effect resulting in characters, markers, or objects occupying a square of blocking terrain is prohibited except for clear and debris markers. If a non-optional effect that places a game element would cause either situation to occur, the opponent chooses a square that is as close as possible to the specified square for the game element to be placed instead. Effects may allow a character to move through characters and/or blocking terrain, but a character can’t end its movement in such a square. If it would, it must end its movement before entering such a square.
THE RULE OF FIRST TURN IMMUNITY
After the Beginning of the Game phase and until each player has finished their first turn, characters are immune unless they leave their starting area (or in rare cases, starting square[s]). Immune is a keyphrase that says “This character can’t be moved, placed, damaged, or targeted by the
effects of opposing game elements.” During game setup, some rare effects allow you to place starting characters outside of starting areas. In that case, the character is still immune as long as it doesn’t leave that square. Once a character leaves its starting area (or square), even if it comes back to the area in the same turn it is no longer immune. Note that all attacks target, so this prevents attacking immune characters.
During my opponents first turn he takes any type of action. My characters who can't use Leap/Climb, Phasing/Teleport, or Great Size will take one unavoidable and be placed by me after actions resolve. Since my starting area is full, the character will not be able to be placed inside the starting area by me due to the rule of occupancy and the opponent gets to place him in the closest square of their choice.
1. Could my opponent continue to choose the square adjacent to the starting area outside the wall and continue to repeat this til he is KO'd?
2. If the character was placed outside the starting area due to the above (but not on Open Air terrain) would they lose First Turn Immunity?