Yikes, we've always played it wrong then. If players A, B, C and D all take turns, then player A takes a law card or passes, players B, C and D would continue on around and around without player A. Hrmmm.
You are part right. If player A takes a law card, he is done and you skip over him. If player A instead passes, he can still perform another action in his next turn as long as everyone else has not passed or taken a law card.