Since steve was doing a contest for a short story why come he did not inform laura about it and besides that i was surprised that laura was not angry at him for using for his fairy tale story he also makes her a villain in the story he wrote.

Its based on her, but its not actually her. The character has a different last name. Rachel didn't get the familys permission to base characters on them either in season one.

Yeah but Steve still used her name which is illigal he should have told her ahead of time if it was ok to use her name for his contest he was entering to be on the safe side, Laura was known to get angry and rude at every little thing Steve did i was shocked to see her calm in the entire episode.