False arrest conditions occur when:

False arrest conditions pertain to situations where an individual is detained without legal justification. In the context of vehicle rentals, this situation most directly relates to renting a vehicle that has been reported stolen and is still on the hot list. When a vehicle is flagged as stolen, it indicates that it has been reported by the owner and is considered unlawfully taken. If a rental company identifies that a vehicle is on this hot list after it has been rented, they may have the legal right to detain the person who has rented it, as they are potentially complicit in the theft by unlawfully possessing the vehicle.

The other choices do not meet the criteria for conditions that lead to a false arrest. Returning a vehicle late, renting to someone without a valid license, or a customer failing to return the vehicle might involve issues of contractual obligations or penalties, but they do not typically create the same legal necessities or justifications for false arrest scenarios that arise from the implications of renting a stolen vehicle.