Reasonableness Standard


Reasonableness Standard

1) A requirement of the Consumer Leasing Act that takes into consideration the individuals' circumstances according to the amount of harm experienced by the lessor if they early terminate, make late payments or cease to make payments. The reasonableness standard looks at delinquency, default or early termination based on the anticipated or actual harm caused by such delinquency, default or early termination; the difficulties in proving the loss; and finally the inconvenience in finding a solution.

2) A benchmark used in court when reviewing the decisions made by a particular party. The reasonableness standard is a test which asks whether the decisions made were legitimate and designed to remedy a certain issue under the circumstances at the time. Courts using this standard look at both the ultimate decision, and the process by which a party went about making that decision.

1) A good rule to use in evaluating the early termination of any vehicle lease is to compare the blue book value of the car at the time to the total payments made under the lease up to the surrender date. Under the Consumer Leasing Act, you have the right to get an independent appraisal by someone agreed to by you and the leasing company.

2) Along with the business judgment rule, the reasonableness standard makes up the backbone of many business-related court cases. Courts must determine whether or not a particular decision is arbitrarily made, or if it is designed to address a defined issue or risk. One of the major factors influencing a court's decision is whether a party's actions affect "health, happiness and enjoyment of life", and that a party's actions do not disproportionately affect others.


Investment dictionary. . 2012.

Look at other dictionaries:

  • standard basis — The basis of assessment of costs where the court will only allow costs which are proportionate to the matters in issue and resolve any doubt which it may have as to whether or not costs were reasonably incurred or reasonable and proportionate in… …   Law dictionary

  • Standard of review — In law, the standard of review is the amount of deference given by one court (or some other appellate tribunal) in reviewing a decision of a lower court or tribunal. A low standard of review means that the decision under review will be varied or… …   Wikipedia

  • Dunsmuir v. New Brunswick — Supreme Court of Canada Hearing: May 15, 2007 Judgment: March 7, 2008 Full c …   Wikipedia

  • United States v. Booker — SCOTUSCase Litigants = United States v. Booker ArgueDate = October 4 ArgueYear = 2004 DecideDate = January 12 DecideYear = 2005 FullName = United States v. Freddie J. Booker; United States v. Ducan Fanfan USVol=543 USPage=220 Citation =125 S. Ct …   Wikipedia

  • Rita v. United States — SCOTUSCase Litigants=Rita v. United States ArgueDate=February 20 ArgueYear=2007 DecideDate=June 21 DecideYear=2007 FullName=Victor A. Rita v. United States of America USVol= USPage= CitationNew=05 4674 Prior= Sentence upheld by the Fourth Circuit …   Wikipedia

  • Dr. Q v. College of Physicians and Surgeons of British Columbia — Supreme Court of Canada Hearing: October 2, 2002 Judgment: April 3, 2003 …   Wikipedia

  • Cunningham v. California — Supreme Court of the United States Argued October 11, 2006 Decided January 2 …   Wikipedia

  • O'Connor v. Ortega — Supreme Court of the United States Argued October 16, 1986 Decided March 31, 1987 …   Wikipedia

  • Canadian defamation law — As with most Commonwealth jurisdictions, Canada also follows English law on defamation issues (although the law in the province of Quebec has roots in both the English and the French tradition). At common law, defamation covers any communication… …   Wikipedia

  • Defamation — This article is about the malicious statement. For the 2009 film, see Defamation (film). Libel and Slander redirect here. For other uses, see Libel (disambiguation) and Slander (disambiguation). Vilification and Calumny redirect here. For the… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.