Law versus legislation

Hayek distinguishes between law - those rules that have evolved spontaneously and are unplanned and integrated into our expectations - and legislation - those rules designed by individuals or legislators and enforced through the threat of force. Similar to Don Boudreaux's lunch room example (listen at http://www.econtalk.org/archives/2006/12/boudreaux_on_la.html), I have noticed in my classrooms that after the first day of class, students almost always sit in the same seat. Thus the seat they choose on the first day, now becomes theirs. It's the law of the classroom, although there is no enforcement mechanism.

One difference is that we know law, but cannot possibly know all of the legislation that is continuously passed. Tennessee recently passed legislation that outlaws the sharing of internet passwords for Netflix and other sites.
http://latimesblogs.latimes.com/washington/2011/06/tennessee-outlaws-sharing-passwords-to-hulu-netflix-rhapsody-and-others.html

This type of legislation is unnecessary, since companies such as Netflix can determine whether I have shared my password with all of my friends. They can easily remove my account if too many people are using it. Netflix does not need the government to collect a $500 fine from me if I share my password. I have the contract with Netflix not the government. If I do share my password with all my friends, then and Netflix can either cancel my subscription or use the courts to sue me for breach of contract.

The question we need to ask is "Who benefits from this legislation?"