The Iron missed out on the chance to draw level with leaders Oxford at the top after a disastrous start left them with a mountain to climb as York raced into a four-goal lead before Sam Winnall pulled back a consolation goal.
Laws believes the visitors were second best across the park and York were full value for all three points.
"I need to portion a large part of the blame on myself to be honest; I got it wrong," Laws said.
"I picked the team wrong, I thought the formation would have suited us away from home, but it simply didn't work for us.
"However, as much as you've got to look at the formation and team selection, you've got to look at the application as well.
"I thought the first 20 minutes was the key part of the game and in all fairness, we were second best to every ball.
"I've got to give York credit, they pressed us for every ball and they started the game superbly.
"They were first to every header, first to every tackle, and first to everything really.
"It wasn't just one or two of our players who were second best, every single one was second best compared to York."