New Jersey Mortuary Science Practice Exam

What can be classified as a 'retail installment contract'?

1. A monthly payment plan for funeral services

2. A contract for purchasing burial plots in advance

3. A verbal agreement with no written documentation

4. A fixed fee agreement that must be paid upfront

The correct answer is: A monthly payment plan for funeral services

A retail installment contract is a legally binding agreement that allows a consumer to purchase goods or services and pay for them over time through scheduled payments. In the context of funeral services, a monthly payment plan fits this definition perfectly. It provides consumers the ability to finance these services by making smaller, manageable payments rather than paying the full amount upfront. This type of contract typically includes terms that specify the duration of payments, interest rates, and total costs. On the other hand, purchasing burial plots in advance does not inherently involve an installment contract; it may be paid all at once or may be structured differently. A verbal agreement lacks the formal structure of a retail installment contract, which is typically documented and legally enforceable. Lastly, a fixed fee agreement that requires payment upfront does not fit the definition of a retail installment contract since it does not offer a financing structure with scheduled payments.