If it gives a contradiction then it isn't correct!
You are using your laws wrong. Here, let me restate them:
Associative Laws
(a + b) + c = a + (b + c)
(ab)c = a(bc)
Commutative Laws
a + b = b + a
ab = ba
Distributive Laws
a(b + c) = ab + ac
(a + b)c = ac + bc
What you are trying to use is the reverse of the Distributive Law, ac + bc = (a + b)c, but you are writing ac + bc = (ac + b)c. This is obviously not correct. You have to factor the c (in your case 1/3) from both terms.
That is to say
not
-Dan