What is the revocation fee for prearrangement cancellation within 15 days?

The correct answer regarding the revocation fee for prearrangement cancellation within 15 days is based on specific regulations that govern how cancellations of prearranged funeral or cemetery services are handled in California. Under these regulations, if a customer decides to cancel their prearrangement within the first 15 days, there is typically a fee that reflects the cost of services that have already been earned up to that point.

Choosing 10 percent of earned income as the revocation fee acknowledges the principle that some initial costs may have been incurred and thus warrant a fee for the service provided up to the moment of cancellation. This fee structure serves as a way to compensate businesses for administrative or other costs associated with processing the initial arrangement, while still allowing consumers a short window in which they can cancel without severe financial penalties.

The other options, while they present various fee structures, do not align with the standard practice defined by California regulations regarding revocation during this early cancellation period. For example, the absence of a fee might not accurately reflect the resources expended in initiating the prearrangement. In contrast, higher percentages or total costs do not correspond with the earned income principle established by regulatory practices.