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I follow leash laws at all times. The National Forest requires a leash, so my dog always has a 6ft leash on. But leash laws do not say I have to physically hold on to the leash at all times, only that I must have control of my animal.
He understands voice commands, so if I see him alert to a potential other person or dog on trail I tell him to stay, hold on to his leash and continue while the person passes just in case, then carry on as before. This is a good compromise for both animal, owner, and bystander. Use your brains, be respectful and you will have no issues.