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My UG didn't allow us to take GE req. fulfilling classes (which this sounds like it might be) as P/F. If it's ok and you can still graduate, I'd take the GPA boost. But you're comfortably above median (maybe even 75th%tile depending on where your final GPA falls within your calculated range) at HYS so it won't really hurt you either way.

If you can, there's no reason not to pass/fail the class. Law schools won't care, and they will about your GPA. It's not a huge boost, but it's a boost.