Laws about TOADS?

Whether it's legal or not, it's a bad idea. The steering geometry on your toad is set with the idea that it will be going "forward". Toe-in, and especially castor are set with this in mind. Even in a perfect world, if you could guarantee that the front wheels were perfectly aligned when towing you would probably have tire wear and possibly stability issues.

Yep, towing companies do this over short distances and (subject to correction) all dolly companies recommend against/forbid this practice...probably for a good reason.