Copyright and Fair Use

Part III, Question 14:
The reason I felt the strongest about this example is because it appears to be stating that it is against the law to show movies to groups of kids. I feel like I'm missing something here because for as long as I can remember my peers and I have been shown movies in school. I suppose I can never know whether or not the school obtained permission to do this, but I can think of at least a dozen times when a teacher has run out during their lunch break to rent a movie to show in class. I highly doubt those teachers also had time to receive official permission to show the movie. Perhaps that is permissible because it is deemed as an educational instance if it is during school hours, but I would personally label the use of a movie as entertainment for the siblings of students during their back to school night a form of educational use as well, being that it helps the parents to be capable of attending the event and being involved in their child's schooling. I guess an appropriate summation of my reaction to this is that this matter seems to be based on really subjective ideas and that it would be really hard to enforce this law.