Hi Scott, I see the same thing.
here is my test...
digging a little deeper, the api returns some extra break tags in the xml that may be causing the issue
see here
<f id="66">
Line 1 of Terms<br /><BR/>
Line 2 of Terms<br /><BR/>
Line 3 of terms<br /><BR/>
Line 4 of Terms<br /><BR/>
Line 5 of terms<br /><BR/>
Line 6 of Terms<br /><BR/>
Line 7 of terms<br /><BR/>
Line 8 of Terms<br /><BR/>
Line 9 of terms<br /><BR/>
Line 10 of Terms
</f>
when I try the same thing with our Exact Forms Plus add-on we don't have that same problem though
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you should open a support case with Quick Base
Keith