How could they not know the law?
I am not a lawyer but I know anytime you are on Indian land or land that is in a Trust, especially a US government Trust, you can't take anything off the land. I have been to national parks and there are signs saying you can't take rocks, much less fossils.
So how could these guys not know the law and how could they offer the landowner 5k for the largest most complete T-Rex ever without a lawyer? You have to be incredibly naive not to get a lawyer involved and find out who owns the land and if there any government restrictions. Especially because it was Indian land.
For that reason alone, the way this played out was correct and the government did the right thing.
This doc feels sorry for the Institute and shies away from what the law was when they found the t-rex and fails to highlight their ignorance of the law. I know the general feeling in this country is that the government is out of control and tries to control our lives but this is not a good example of government abuse. If anything, it illustrates that land rights mean something and that you better know the law when you want to play in the big time on someone else's land.