Read this article to understand better - http://www.mattcutts.com/blog/reinclusion-request-howto/

Reconsideration requests for banned domains is always supported by Google
https://support.google.com/webmasters/answer/35843?hl=en

Log in to Webmaster Tools > Tools > My Sites page > Submit a re-inclusion request
you will see that one of the purposes is  "#  You recently acquired a domain which you suspect may have previously violated our webmaster guidelines."
Fill the form, explaining that you have purchased the domain recently and think it might have violated the guidelines and the site currently abides by the guidelines.
Make sure it provides unique content and your pages to have value in order to get them indexed.

Link Juice will surely be passed, but the relevancy, quality and linking keyword plays an vital role in determining whether search engine consider it.

As you might be knowing about the Search Engine SEO Updates, even it might be ethical today, it might not be ethical very soon.