While the baofeng radios can be programmed to operate on frequencies of many different services, they are not certified by the FCC for most services. Most of these radios are: (1) used for amateur radio, or, (2) being used illegally.
These can be legally used for ham radio because the FCC does not require hams to use certified radios but you (and the other person) would need to amateur radio licenses.
Here is an example of what happens when these radios are used by people who just program in a random frequency to use:
http://www.nbcphiladelphia.com/news/local/Kids-on-2-Way-Radios-Interfere-With-Emergency-Calls-228090311.html
I would suggest getting some FRS radios, these would have very nearly the same range that you would get from the baofengs and no license is required. MURS radios might work as well but are not as common.
As for range, there are many factors but the main issue is the terrain. Over an open field you can expect that the radios could go several miles. Many miles between hilltops, maybe half a mile between cars, 1/4 mile in town.
It is generally fine to Listen to anything that the radio could receive but some states prohibit listening to police transmissions if you are in a car etc.