Need car help

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I'm not much of a gear head so I'd thought I'd solicit you guys for some help.
My wife owns a 88 VW Cabriolet and just recently the oil light goes off and the buzzer gets loud. The buzzer is driving her insane. Could the buzzer be a part of the electrical wiring?

Last night I put a big piece of cardboard under the engine to see if any oil is leaking, and there were like 5 spots the size of a quarter or so in different places on the cardboard.

Even a non gear head as myself knows she has a very slow leak, but why does the oil light go off when there is ample amount of oil in the crank case?

Thanks
 

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