Mortuary Science Practice Exam

If a prepaid contract is revoked, what percentage of the funds paid to the contract seller will be returned?

1. 75%

2. 50%

3. 100%

4. 25%

The correct answer is: 100%

When a prepaid contract is revoked, it is typically governed by specific legal requirements and consumer protection laws that vary by jurisdiction. In many places, the consumer has the right to receive a full refund—100% of the funds paid—if they decide to cancel the contract within a stipulated time frame, often referred to as a "cooling-off period." This provision is designed to protect consumers from losing money on services they may no longer require or wish to pursue. The rationale behind allowing a full refund is rooted in ensuring fairness and transparency in the sales process, particularly in industries that require significant financial commitments, such as funeral services. This allows individuals to change their minds without financial penalty, thereby promoting consumer trust in service providers. The other options reflect less common practices that might occur in different scenarios. However, under usual circumstances involving the revocation of prepaid contracts, the expectation is for customers to receive their full payment back, supporting the correct choice of 100%.