Question

Tara's cellphone carrier would charge her $250 to cancel her current contract. if tara wants to change cellphone carriers, the $250 she would have to pay is considered a:

Answer 1

Tara should research cheaper colleges, living at home while attending school, and good savings plans.

Answer 2

In order to cancel her contract, Tara would have to pay what is commonly called an Early Termination Fee (ETF). This fee is called a penalty and falls under a the larger category of contract penalties and may also be called a financial penalty or consequence. There is much debate over the legality of the issues when it relates to cellphones.