1115699:As an example of what I meant, imagine I have Apprentice Teep in play and exhausted. It's my opponents turn, and he attacks my exhausted Teep with an ally. Does Teep do damage to his ally?
Just to re-clarify for any others who didn't understand above, yes, Teep still does damage. Exhausting has nothing to do with damage.
1115699:Related, if my hero is attacked he can strike back with his weapon. If he's attacked a second time, can he strik back a second time without doing anything to ready his weapon?
No. In order to strike with a weapon, it must be exhausted. If a weapon is already exhausted, it cannot be used to strike.
1115699:Can my hero attack with his weapon on his turn? Abilities like Cleave make it look like he can but can he just pay weapon strike cost and attack?
Yes, your Hero may attack with a weapon on your turn. To clarify the combat order, it would be as follows:
1. You propose an attack with your Hero, and name a target.
2. Your Hero exhausts, and begins the attack.
3. The target begins defending.
4. You pay the strike cost of your weapon, adding it's ATK value to your Hero's. You Hero and his target deal damage equal to their ATK to each other.
5. Combat concludes.
Kingdom of Karr, Part 1-2 (weekly story + Stormwind Test Video)