Another HBK 1998 Question….

Here's a question that I don't think has ever been answered: what if Shawn had called Taker's bluff? Would the Deadman really have kicked his ass all over the lockerroom? And what happens then? Because if anything, Shawn would have had the perfect excuse not to work that night, plus some heavy ammo for a lawsuit to boot (especially if he could prove that WWE knew what was going to happen and did nothing to stop it). 
I mean, it's a great story and all, but there could have been some serious consequences if things had gone the other way.

I'm pretty sure Shawn would have worked the match with a black eye.  I mean, Shawn threatened a lawsuit against Bret Hart for their locker room hair-pulling spat, giving exactly the reasons you listed, and nothing ever came of that either.  Wrestlers are of course notorious for talking big and then doing out and having a fake fight regardless.