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I used Taunt to get him to swing at me. No fines. No Bounty.
My most recent character (Female Wood Elf Custom "Ranger"):
I finished all the Faction Quests for groups I wanted (Imp Legion, Fighters, Mages, Temple, Redoran and Imp Cult except Almoner quests because I do not like sucking up to people or stealing/black mailing) before I started the Main quest. I resolved all "Kill Person X" type quests by Taunting them and letting them take the first shot.
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