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Easy answer:
Q: Can you use a piece of copyrighted music, in accordance with fair-use policies (10%, no greater than 30 sec) in a FIRST submitted animation?
A: Yes
Q: If you do so, will it be disqualified?
A: Yes.
You CAN put it in. They WILL disqualify you if you do.
Fair-use or not, it's still a copyrighted piece. As Dave Lavery bluntly put it: You're screwed.
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