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I think you did the right thing. I would have called the police and had him cited. It sounds like he's got a friendly dog that just needs obedience training. Due to his irresponsiblility, he could cause his dog to be shot or otherwise harmed by its obnoxious behavior.
If a dog attacked me, a relative, or even one of my own pets (which are family), then I would not hesitate to do what would be necessary for defense.
The apple spray sounds like the perfect idea for the situation you shared with us. It isn't harmful, just aversive to them. Where did you get it?