RE: Question about being legal or ethical
In this situation, everyone has an opinion on what the "best" decision is.
Some will say to follow the law regardless and iothers will say do the ethical thing regardless of what the law says.
I know what I would have done.
Whatever you did, it appears that you took a lot of time to think about it and you made a decision based on what "you" thought was best. That IMO is all that can be asked of anyone.