What is the consequence if a purchaser cancels the contract?

In Kentucky, if a purchaser cancels a funeral or burial pre-arrangement contract, the law stipulates that they are entitled to receive 85% of the payments made. This provision is in place to protect consumers while also recognizing the costs and commitments incurred by the funeral service provider. The remaining 15% is typically retained by the provider as a cancellation fee, which covers administrative costs and any fees associated with processing the cancellation. This structure encourages transparency in the cancellation process and allows for a fair resolution for both parties involved.

It is important to note that full refunds may not be feasible due to the nature of the services and the preparation that goes into them. Charging a cancellation fee or offering no refund would not align with the statutory provisions set forth to protect consumer rights. Thus, the correct answer reflects the legal framework established in Kentucky regarding contract cancellations in the funeral industry.