Hi Turbine D & JT,
An example of an event which would put you in Direct Law would be a double engine failure,
Direct Law would occur only after putting the Landing Gear down. Up until then, you'd be in Alternate Law.
The aircraft is only statically neutral with the aid of the FBW computers. In Direct Law (stick deflection proportional to control surface deflection) they are (beautifully) dynamically stable.