Step 1: Define Newtonian fluid.
A Newtonian fluid is one whose viscosity remains constant regardless of the applied shear rate. The fluid obeys Newton's law of viscosity, which states:
\[
\tau = \mu \left( \frac{du}{dy} \right)
\]
Where \( \tau \) is the shear stress, \( \mu \) is the dynamic viscosity, and \( \frac{du}{dy} \) is the shear rate.
Step 2: Conclusion.
Since the fluid follows Newton's law of viscosity, it is a Newtonian fluid.
Final Answer:
\[
\boxed{\text{obeys Newton's law of viscosity}}
\]