i want to do law/psych at macq, i am in the same boat as u, mac doesnt have the reputation of nsw or syd, but i have spoken to a lot of ppl about the quality of law at mac and the reasons the uai is lower is because compered to the other two, it is a relatively young uni. the current dean of law is the former dean (or lecturer...) from both nsw AND syd. she enforced (to me at least) that the quality of teaching isnt lower, its simply the reputation and age of the uni that mean they have the lower uai. but the uai is creeping up every year. the law students ive spoken to a mac LUURRRVVEEE the coarse, and mac does really well in mooting competitions and their law society is fantastic (esp for the social side). i went to that law evening at nsw, but the law society seems really...i dunno, stuck up. very snobby, whereas at maq i really felt like they enjoyed studying their course and enjoyed being where they were. if we're gonna be stuck there for 6yrs (for the d.degree) then i sure as hell want to be enjoying studying my degree.
no, it isnt looked "down" on by employers, as maq really does have a good reputation now. i dont know if that helps, but im definately keen to do law at maq, it is just a really good atmosphere there, and (from what ive been told) the quality in teaching is not lacking at all.