South Carolina Funeral Law Practice Exam

If the merchandise selected preneed is not available at the time of need, what must the provider do?

1. Provide a refund

2. Offer merchandise of lesser value

3. Make available merchandise of equal or greater value

4. Cancel the contract

The correct answer is: Make available merchandise of equal or greater value

When merchandise selected for preneed arrangements is not available at the time it is needed, the provider is required to make available merchandise of equal or greater value. This provision is designed to ensure that the consumer receives a product that meets their expectations and respects the financial commitment they’ve made in purchasing a preneed plan. The rationale behind this requirement is rooted in consumer protection. Preneed contracts are agreements between providers and clients that facilitate the arrangement of funeral services and the selection of merchandise in advance. It places a responsibility on the provider to honor the original intent of the purchaser, which is to secure specific goods and services, even if circumstances change and the originally chosen products are no longer available. By ensuring that the client is offered merchandise of equal or greater value, the provider maintains the integrity of the arrangement and upholds the contract's spirit. This requirement also fosters trust between consumers and providers and helps to avoid dissatisfaction at a very sensitive time, which is often when these goods and services are utilized.