What is the likely consequence of failure to pay examination expenses by the selling entity?

The most appropriate consequence of failure to pay examination expenses by the selling entity is that legal action may be taken. This reflects the serious nature of contractual obligations and regulatory compliance in the funeral industry. When an entity engages in the sale of a business or assets, they often agree to cover certain costs associated with regulatory examinations or inspections. If these expenses are not paid, it indicates non-compliance with regulatory requirements, which can prompt officials to initiate legal action to enforce compliance or seek restitution for the unpaid expenses.

Legal action serves as a formal response from regulatory bodies to ensure that entities adhere to the laws and regulations governing funeral services. This could manifest in various forms, such as lawsuits or enforcement actions, to compel the entity to fulfill its financial obligations.

The other consequences suggested may not adequately capture the seriousness of failing to pay examination expenses. While losing a business license could be a consequence of ongoing, more systemic violations, there is not a direct correlation solely based on the non-payment of examination expenses. Similarly, the lack of specified consequences or transferring assets to the state does not apply directly to this situation, as those are not typical outcomes of financial non-compliance related to examination costs.