Goldhar & Nemoy, a Law Firm, Leases a Fax Machine

Goldhar & Nemoy, a law firm, leases a fax machine from QED Business Machines. The principal is $5,000 and the interest over the five-year term of the lease is $1,000, so that G & M's monthly payment are $100 for 60 months. The lease provides that if any payment is missed, the entire balance of the lease becomes due, and QED may repossess the machine. G & M makes the first 12 payments, then defaults. QED repossesses the machine and immediately re-leases it to another company on the same terms. It sues G&M for $4,800. Which of the following statements is TRUE?

A) This lease contains an acceleration clause which permits QED to sue for the full balance owing after a default?
B) G&M may be able to defend on the basis that the acceleration clause is a penalty.
C) If the acceleration clause is struck down, QED's damages will be limited to the expenses of repossessing and re-leasing the machine.
D) All of the above are true.
E) None of the above are true.