Mortuary Science Practice Exam

What is one consequence of charging a commission greater than 5% on a contract price?

1. Increased fees for services

2. 100% of the remaining balance must be paid to the person entitled

3. Loss of credibility with funeral service organizations

4. Mandatory reporting to the state

The correct answer is: 100% of the remaining balance must be paid to the person entitled

Charging a commission greater than 5% on a contract price can lead to the imposition of specific legal repercussions, particularly the requirement that 100% of the remaining balance must be paid to the person entitled. This regulation is designed to protect consumers from excessive charges that could inflate the cost of funeral services beyond reasonable limits. By enforcing such a rule, regulatory bodies aim to maintain fairness in transactions within the funeral service industry, ensuring that practitioners adhere to established guidelines that protect both the provider and the consumer. This requirement holds significance not only in maintaining ethical standards but also in promoting transparency within the industry. Funeral service professionals are expected to operate within a framework that values integrity, which is essential for building and sustaining client trust. Failure to comply with these commission regulations could lead to stringent financial consequences for the practitioner involved and might jeopardize consumer confidence in funeral services overall.