What percentage of the cash purchase price of a prearrangement funeral service contract may a funeral establishment retain if it is canceled within thirty calendar days?

The retention of up to ten percent of the cash purchase price of a prearrangement funeral service contract if it is canceled within thirty calendar days is aligned with the regulations governing funeral service contracts in Washington State. This regulation is designed to protect consumers while also acknowledging that funeral establishments incur certain costs when a contract is made.

When a consumer cancels a prearrangement funeral service contract within the stipulated thirty-day period, the funeral establishment is permitted to retain a small, predefined percentage of the cash purchase price to cover administrative and operational costs associated with processing the contract. This retention percentage reflects a balance between the funeral establishment's need to recover certain costs and the consumer's right to cancel without heavy penalties.

The specific percentage, in this case, establishes a clear limit, ensuring that consumers are not unduly penalized while the funeral establishment is compensated for its services nonetheless. In contrast, other provided options imply different retention amounts or no allowance for retention at all, which would not align with the existing laws governing such transactions.