Indiana State Board Funeral Practice Exam 2025 - Free Funeral Service Practice Questions and Study Guide

The basis for invalidating a preneed funeral contract revolves around the ethical and legal concerns associated with inducements or incentives provided to the consumer. When a funeral home or provider receives cash or gifts as an inducement for contracts exceeding a specified value, it raises red flags regarding the validity of the contract. This practice can lead to coercion or undue influence on the consumer, undermining the fairness of the transaction. By law, such inducements are seen as inappropriate and can render the contract void due to concerns about the integrity of the business practices involved.

In contrast, while failure to complete mandatory paperwork, having an unsigned contract, or any modifications after signing are important considerations, they do not carry the same weight in terms of ethical implications or the potential for exploitation that the receipt of cash or gifts does. These other factors may affect the enforceability of the agreement but do not fundamentally challenge the contract's legitimacy in the same way as receiving inducements. Thus, the receipt of cash or gifts as an inducement for contracts is a clear basis for invalidating a preneed funeral contract.