The Mike story can be considered an example of the halo effect if you assume that Mike can interpret the obtuse language better than Jessica can because of his morality. On the other hand if Jessica interpreted it herself she would probably have gotten the same wrong impression of the law as Mike.

Or it could be that Mike interpreted the law correctly but has a few quirks in his morality that you don't. In which case it is not the case of the halo effect and more of a generalization or heuristic failing in a specific instance.

Tvtropes:Broken pedestal has some good examples of the halo effect.