Would a wise person avoide situations where other could perform lot of demerits?

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Yes. Wise person would avoid situations which can give negative vibrations. When you are in contact with negative things, they weaken you. So as much as possible, you should be with positive thinkers. Because, after all, our life is result of our sankalps, therefore, be with the things which give you hope and confidence.

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Would a wise person go out only if meritorious reactions are suspected?

The Gilana Sutta (AN 3.22) might imply that a wise person would go out if a meritorious reaction is even possible -- even if an unmeritorious reaction were also possible -- i.e. "on the chance that they may actually turn out to need and benefit from such".

Another way to say it is, perhaps you shouldn't only judge an act by its effect -- "was it effective, successful?" -- but by intent.

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The general Buddhist advise is to associate wise people. There are many Buddhist stories that Buddha encountering unwise people. It appears that Buddha did not have much time for those people. You find stories such as Angulimala. But they appeared to be intelligent people.

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