I know this is a late response, but I found how to fix this. I'm using VM 2.0.18/Joomla 2.5.8.
Under Configuration -> Checkout, I made sure both of the following were unchecked -
-Must agree to Terms of Service on EVERY ORDER?
-Show Terms of Service on the cart/checkout?
After unchecking these, while the text disappeared at checkout, the checkbox was still there. To get rid of the checkbox, I went to Configuration -> Shopper Fields and selected the checkbox next to "Agreed" and at the top of the page clicked "not required." That fixed it for me.