The Terms of Service module shows the sites Terms of Service document to the user and requires that they accept them before they can continue using the site.
This happens in the flow of things after the user has created an account and is attempting to login for the first time.
The will be shown the Terms of Service and required to ACCEPT before continuing any further.
Requires the Page Creator module to be installed and active.
First thing to do is to use the Page Creator module to create your Terms Of Service document.
Next go to the Terms of Service module and select the page that you have just created as the one that will show to people who have not yet agreed to the terms of service.
It is possible to setup a different Terms of Service for each of the quotas in your system if desired.