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If a prepaid contract is revoked, what percentage of the funds paid will be returned to the contract seller?
50%
75%
100%
25%
The correct answer is: 100%
In the context of prepaid funeral contracts, if a contract is revoked, the law typically mandates that the full amount of funds paid must be refunded to the purchaser. This ensures consumer protection, allowing individuals to retrieve their money in full if they decide to cancel the agreement for any reason. The rationale behind this policy is to uphold fairness and trust in financial transactions related to funeral arrangements, recognizing that circumstances can change for consumers. Thus, the full recovery of funds helps maintain the consumer's rights and supports better financial planning. It is crucial for mortuary professionals to be aware of and comply with these regulations to foster ethical practices in the industry.