Ethics CFAI curriculum page 25 book 1

In Exhibit 1, second set from the top, it says LS law applies.

Shouldn’t it be MS law applies because it is more strict?

If you go back to the beginning of exhibit 1 on page 24, the 4th set from the top says MS law applies. These are almost identical questions, but the answers are different.

My copy of the curriculum says that MS law applies in both cases.