The first answer is, this depends on the jurisdiction you are in; "fair use" (in the USA) is different from "fair dealing" (in the UK). In the UK, the MP3 is a copyright violation unless you have a license from the rights-holder even if you own the CD, as there is no implicit right to format-conversion.
The second answer is that creating a new copy, as you do when you upload the file Google Docs (or any other web-based service) is a copyright violation in itself.
The third answer is that this isn't a criminal offence under most jurisdictions, and many privacy laws have exceptions for criminal offences, but not for civil liabilities. Revealing your private data - even if they did so to expose a civil liability - may well be a breach of your privacy rights.
I'm not a lawyer, this isn't legal advice, contact a real lawyer.