The initial disclosure requires that certain disclosures relating to the termination of a lease be given to the consumer. Which of these disclosures is NOT required?
Click on the arrows to vote for the correct answer
A. B. C. D.C
The initial disclosure requirements under the Consumer Leasing Act (CLA) mandate that lessors (i.e., those who lease personal property to consumers) provide certain important information to the lessee (i.e., the person who is leasing the property) before entering into the lease agreement. This is to ensure that consumers are informed of the key terms and conditions of the lease and can make an informed decision.
The four options given in the question relate to disclosures that must be made in connection with the termination of the lease. Let's examine each option in turn to see which of these disclosures is NOT required:
A. The conditions under which the lease may be terminated before the end of its term
This disclosure is required under the CLA. Lessors must disclose to lessees the conditions under which the lease can be terminated before the end of its term, such as if the lessee defaults on payments or breaches the terms of the lease in some other way.
B. Whether or not the lessee has the option to purchase the property and at what price
This disclosure is also required under the CLA. Lessors must disclose whether or not the lessee has the option to purchase the property at the end of the lease term and, if so, the price at which the property can be purchased.
C. Whether the lease may be extended at the option of the lessee
This disclosure is required under the CLA. Lessors must disclose whether the lease may be extended at the option of the lessee and, if so, the terms and conditions of such an extension.
D. Whether the lessee will be liable for the difference between the estimated value of the property and its realized value at the termination or end of the lease
This disclosure is NOT required under the CLA. Although lessors may choose to include this information in the lease agreement, they are not required to disclose whether the lessee will be liable for any difference between the estimated value of the property and its realized value at the end of the lease term.
In summary, option D is the correct answer. The other three options are disclosures that are required under the CLA in connection with the termination of a lease.