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Yes, it is confusing, as you have no visual indicator that you have finished the document. The legal issue it the real problem here. In a strict legal sense, you can not be considered to have agreed to part of a document that was hidden from you. This is like someone adding pages to the back of a page in a document that you did not know was there. It is ...

This previous UX SE question on affordances for scrolling might be helpful. Maybe you could size the line-height and the window height so that half a line of text is visible as a visual clue that there's more to read. Or provide a link to a separate page with the full terms? You'll have to ask a lawyer what's required to keep yourself from being legally ...

You could go with an automatically expanding textbox for the description. It would keep the fields rather unobtrusive when not used. There is a good article/example here: http://www.alistapart.com/articles/expanding-text-areas-made-elegant/ download bmml source – Wireframes created with Balsamiq Mockups

I agree more information would help. Sometimes you want to encourage users to fill-out the optional description, but the opposite may be true too. It would also be helpful to know what typical questions and dropdown values are. I think here are two basic approaches, but in either case, I would definitely use self-adjusting input field that grows in height ...

In my organization we us jQuery to bind a simple function to slide down/display a hidden div that contains the other inputs/content. Based on a specific radio/checkbox/dropdown list value selection the function executes. We also style the div so the contents appear to be indented to provide the context that its a sub-question. See example below.