Is it a hypothesis, a theory, or a law?

In order to help my oldest daughter learn about hypothesis, theories, and laws we've done a number of experiments and explanations. She was finally put to the test to see if some paragraphs written used the scientific method or not. What do you think?

"Johnny Appleseed was out reading under an apple tree one evening when all of a sudden an apple dropped on his head. After several minutes more apples were dropping. He thought to himself that maybe all things fall down and not up. He started to drop things and make things fall all over his farm and community to prove his thoughts. After many months he theorized that all things do fall down and not up. Several years passed and Fred Flinstone was reading the morning "Rock Paper" and noticed the article regarding Johnny Appleseeds findings many years ago. He decided to test Mr. Appleseeds theory since he was always picking things up or making things fall. Fred went to work many mornings at the Rock Quarry and picked many things up or knocking many things down. Sure enough Fred discovered that this theory was indeed true. He decided to share his thoughts and experiments at the local "Donut Rock Bakery" where many cartoonist gathered for their morning breakfast. After many other cartoonist like Larry Boy, Super Mario, Papa Smurf, and Dora the Explorer heard Fred's thought, they all decided to test this theory themselves at their jobs and homes. Many months went by and finally they all gathered together and put together a law that states: All things that drop or falls must go down, not up!

All names of the real people were hidden to protect the innocent!