[IAWA] Multi-PC conflict question

Played IAWA tonight for the first time in awhile.  Lots of multi-sided conflicts, leading to my question: 

Say A and B and C are in a conflict together.  A defeats B.  C can still challenge in this conflict.  Can C challenge B?  Seems harsh that B might get defeated twice in one conflict, but it is a wicked age...

A defeats B and they negotiate immediately. B is out of the conflict at that point.

Check out the example on page 21. Towards the end of the page it states that the player who was taken out early in the first round can't be made to answer.

Shoot, I knew the answer was most likely in that example, but I was focused on the end.  Thank you!