If #2 doesn't get the the potential job, they could come after you for all sorts of things - emotional damages, economic damage (from not getting the job), etc. They might even be able to get the court to force you to give them the job, or at least waste years of your time and mental health dealing with legal hassles.
It's hilarious and awesomely entertaining, but don't do it if you have assets someone could go after, as eventually, someone will.