So you are allowed to violate the law if you aren't sued quickly enough.

Yes. This has always been, and will always be, the case. It's the same in things like copyright law - you can violate any software license if the copyright holder doesn't know you're doing it, or doesn't want to sue you, or doesn't sue you in time. It's the same with taxi medallions or hotel regulations if you're trying to start Uber or AirBNB.

Well, you're allowed to violate the contract if you aren't sued quickly enough. You're allowed to violate the law if you aren't prosecuted quickly enough (for some crimes).