my dog was recently attacked by a rescue dog. who was know to be agressive and attack other dogs but yet its owner took it on a walk threw my residential neighborhood. When it saw me and my friend it attacked my dog, his 10 week old pup and my friend. Isnt there a law about adoption known agressive dogs? Or some type of process there of?

Some dogs are fine with humans and just aggressive to other dogs. They're territorial, so I'm guessing this dog, considering that it's a rescue dog, is perfectly safe for humans. So just keep your dog away from it.