Caroline is correct that most people don't bail out of forms because of label positioning. The user studies I have done have found validation and error handling to be much bigger problems. For example, trying to create a strong password of CapLetters lowercase Punctuation#! and getting a vague error message that says "Please enter a valid password" is more likely to create a problem than whether the label "Password" was above or to the left of the text input. If a certain character is not allowed, say so.
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