roverroad wrote:I was also concerned about what if I allow a link to a website that offers medical procedures in another country that are legal there, but illeagle in the U.S..
The act itself of divulging information about something illegal is not always illegal. However sometimes it's actually illegal to merely divulge information, and those rare cases are what you should watch out for. For the average webmaster the most common would be related to copyright infringement (e.g. sharing music on your site, showing people how to remove dvd protection for illegal purposes).
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Also, does the placement of the links affect SEO? For example, using the bottom of a web page to display the links instead of the top so that the search engine will have picked up all of the important stuff before picking up outside links?
Yes, nearly every single detail about every element on your every page (and every page that links to it) makes a difference, so an answer to your next question may require a book's worth of knowledge. That's why I caution you against what you are trying to do. As you describe it, the link exchange you plan, if discovered by search engine QA, would likely result in your removal from the search engine.