Copyright and Fair Use LR

I though question #14 was the most ridiculous of them all. I was confused on the description given; it said that it is not covered under fair use for entertainment or reward, and then went on to say it was entertainment. Either way, I can not believe that it is not permissible for a child care service to watch Disney movies. It’s not like the sibling are going to school, there basically just being baby sat. The most confusing part of it all is that it will become legal if you by a one time license from Disney for $25. I feel like the only responsibility that you should have when buying a movie, is paying for it, and not copying it. It does not make sense that you have to buy it, and then buy a license so some children can watch it. I might have the question confused, because the day care is part of the school, but still, they bought the video and are not doing anything wrong. I feel that Disney is just trying to make an extra buck, and is nitpicking.