It means the car can be commanded to break the law by the driver. Which is no different from any other car on the road. It's not just spontaneously deciding the exceed the speed limit, it does so when the driver tells it to.

Interesting. I suppose the questions everyone is asking are: Can we extrapolate that liability to the 'driver' of a driverless car? By pressing the 'on' button, are you commanding the vehicle to break the law should it do so?

From the notes it looks like they're just setting the upper limit on TACC to speed limit +5pmh on residental roads. You can still set TACC to exactly the speed limit without any issues.

Right, so in other words, the car allows you to break the law - just like any other car - but unlike most, it prevents you from breaking it by much.

There is going to be some friction between true self-driving cars and unrealistic speed limits in the near future though.

I wouldn't say it prevents you from doing much of anything. The car will still speed however you want it to, just not with the machine in control.

Yes, sorry, I was referring to the operation with automation engaged. As opposed to a standard cruise control, which can be set to any speed you want. Obviously in manual mode it will let you speed.