Bad Stuff on Monster Cards

[Tarock]

I'm using the Munchkin Deluxe set, and I'm not sure whether the "Bad Stuff" on Monster cards should be applied immediately when as the card is drawn face up (or played during a Look For Trouble phase), or if that Bad Stuff applies only after you lose a fight with the Monster.

Also, if a player gets stomped to death after drawing the 3,872 Orcs card, does that player lose the game or does he/she merely begin again - back at level 1 - with a new character and a new hand of 8 cards?

Thanks for your help.