South Carolina Funeral Law Practice Exam

What is the percentage that can be retained by the provider if a purchaser opts to cancel a contract?

1. 5 percent

2. 10 percent

3. 15 percent

4. 20 percent

The correct answer is: 10 percent

In South Carolina, when a purchaser decides to cancel a funeral services contract, the law permits the funeral provider to retain a certain percentage of the total cost as a cancellation fee. The correct response indicates that the provider can retain 10 percent of the total cost. This retention is meant to account for the administrative costs incurred by the provider up to that point, ensuring they are compensated for their efforts in preparing for the contracted services. The percentage represents a balance between protecting the consumer’s right to cancel their purchase without severe financial penalty, while also acknowledging the provider's investment in processing the contract and scheduling. This balance is key in consumer protection legislation, making it reasonable for both parties involved. Thus, understanding this percentage helps both funeral professionals and consumers navigate cancellations in a fair manner.