Q12. Is there any place on the map where swords are illegal, magic is outlawed or any other notable hassles from Johnny Law?

When entering the outer bailey of Candle Keep, the guards will peace-bond weapons and enjoin visitors against casting hostile, damaging, or disruptive magics. Heribert Greenhill will reiterate these warnings to anyone seeking to lodge at the Copper Hand Inn and drawing a blade or casting in the Three Apple Tavern is a great way to get beaten by the guards, stripped to your skivvies, and tossed out the main gate.

Candle Jack does not allow visitors their weapons, armor, or magic in the inner bailey of the Keep except for delvers being escorted by his guards to the dungeon entrance.

Otherwise, it is not uncommon to see the armed and armored shopping in the outer bailey or wandering around the town. The Borderlands are dangerous, even next to the Keep.