Naturally it makes complete sense to observe the legal ramifications and do proper consultation before taking any steps.
Rash immediate un-consulted action could be costly.
Cautious well consulted, planned and timed action may sidestep potential unforeseen cost...possibly resolve the issue with little ...if no upset to timelines and availability of funds..

Agreed.

Fact is ...I'm guessing this situation is precedent setting with paypal and their policies...how this is handled, dealt with and resolved will spell whether other enterprises invest their time and monies into paypal as a result of the outcome of this situation...