you are allowed to hunt with it, but only for small game such as woodchuck, squirrel, rabbit.. just be careful not to shoot at the squirrels in the trees in case you miss and the bullet travels somewhere unknown
nope,not illegal or any restrictions i know of, you can use them for squirrel and also racoon hunting(i believe it is a shotgun for rabbit but do not quote me)-just make sure your not around houses or close to other folks in the woods-those little bullets do travel