Important Information on Early Termination Notice

ABD

Sure, I'd be happy to provide a detailed explanation of the answer choices and which one is correct.

The question is asking which item should be included in an early termination notice in the case of termination from a consumer leasing agreement. Let's review each of the answer choices:

A. A warning to the consumer that a substantial charge may result from early termination (required only in a motor vehicle lease) This answer choice is partially correct. The requirement to include a warning about a substantial charge resulting from early termination is only applicable to motor vehicle leases under the Consumer Leasing Act. Therefore, while it is a requirement for motor vehicle leases, it may not be required for other types of consumer leasing agreements. Additionally, this answer choice only mentions a warning about a potential charge, but it doesn't include any information about what that charge might be or how it would be calculated.

B. A statement of the conditions under which the lessee or lessor may terminate the lease prior to the end of the lease term This answer choice is also partially correct. It is important to include information about the conditions under which the lease may be terminated early, but it doesn't provide any information about what will happen if the lease is terminated early, such as any charges or penalties.

C. The purchase option at the end of the lease term This answer choice is not relevant to the question being asked. The question is asking specifically about early termination notices, and the purchase option at the end of the lease term is not related to early termination.

D. The amount of any penalty or other charge for early termination (the penalty must be reasonable) This answer choice is the correct answer. It includes the required information about any penalty or charge for early termination, and also specifies that the penalty must be reasonable. This information is important for the lessee to know in order to make an informed decision about whether or not to terminate the lease early. By including this information in the early termination notice, the lessee can make an informed decision about whether to terminate the lease early or continue with the lease until the end of the term.

In conclusion, the correct answer to this question is D: The amount of any penalty or other charge for early termination (the penalty must be reasonable).