Final answer:
The Consumer Leasing Act limits end-of-lease payments to a maximum amount equivalent to three times the monthly payment, which is meant to protect consumers from excessive costs at the end of a lease.
Option 'C' is the correct.
Step-by-step explanation:
The Consumer Leasing Act protects consumers who enter into lease agreements for personal property, such as cars, by providing clear disclosure of lease terms and setting limits on certain costs associated with leasing.
One important provision of this act is the limit it places on end-of-lease payments. According to the Consumer Leasing Act, end-of-lease payments are limited to a maximum dollar amount that is equivalent to three times the monthly payment. This means that the correct answer to the question is:
The limit of three times the monthly payment is set to protect consumers from excessive costs that could arise at the end of a lease term.
By capping this amount, the law helps ensure that consumers are not faced with unexpected, large lump-sum payments, potentially making leasing a more accessible option for many. Hereâs an example: if a consumer has a monthly lease payment of $300, the maximum end-of-lease payment that could be required under the act would be $900.