§ 523A.602 — Consumer rescission, cancellation, and refund rights — purchase agreement compliance with other laws

Iowa § 523A.602

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 523A: CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES

Text

compliance with other laws.
1. A seller shall furnish the purchaser with a completed copy of a purchase agreement
pertaining to the sale at the time the purchase agreement is signed. The seller shall comply
with the following terms:
a. The same language shall be used in both the oral sales representation and the written
purchase agreement.
b. Thesellershallgivenoticeinthepurchaseagreementofthepurchaser’srighttorescind
after signing the purchase agreement. The rescission period must be, but may be greater
than, three business days after the date of the purchase agreement. The notice must:
(1) Be located close to the signature line.
(2) Be printed in twelve point boldface type.
(3) State in language that is substantially similar to the following language:
You, thepurchaser, havetherighttorescindthisagreementatany
time prior to midnight of the (insert relevant number, not less than
three) business days after the date of this agreement.
§523A.602, CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES 24
c. All moneys shall be refunded without penalty within ten days after rescission.
2. Cancellation refund.
a. A purchase agreement must include a statement that the purchaser has the right to
cancel the agreement for the purchase of cemetery merchandise, funeral merchandise, and
funeral services upon written demand and designate or appoint a trustee to hold, manage,
invest, and distribute the trust assets.
b. (1) If a purchase agreement is canceled, a purchaser requests a transfer of the trust
assets upon cancellation of a purchase agreement, or another seller provides merchandise
or services designated in a purchase agreement, the seller shall refund or transfer within
thirty days of receiving a written demand no less than the purchase price of the applicable
cemetery merchandise, funeral merchandise, and funeral services adjusted for inflation,
using the consumer price index amounts announced by the commissioner annually, less any
actual expenses incurred by the seller pursuant to the purchase agreement as set forth in
the purchase agreement under section 523A.601, subsection 1, paragraph “f”. The amount
of the actual expenses deducted by the seller shall not exceed ten percent of the purchase
price of the applicable cemetery merchandise, funeral merchandise, and funeral services.
The seller may also deduct the value of the cemetery merchandise, funeral merchandise,
and funeral services already received by, delivered to, or warehoused for the purchaser.
(2) If a purchase agreement is canceled before the purchase price is paid in full, a
purchaser requests a transfer of the trust assets upon cancellation of a purchase agreement
before the purchase price is paid in full, or another seller provides cemetery merchandise,
funeral merchandise, funeral services, or a combination thereof, designated in a purchase
agreement before the purchase price is paid in full, the seller shall refund or transfer within
thirty days of receiving a written demand no less than the amount paid by the purchaser,
less any actual expenses incurred by the seller pursuant to the purchase agreement as set
forth in the purchase agreement under section 523A.601, subsection 1, paragraph “f”. The
amount of the actual expenses deducted by the seller shall not exceed ten percent of the
total original purchase price of the applicable cemetery merchandise, funeral merchandise,
funeral services, or a combination thereof. The seller may also deduct the value of the
cemetery merchandise, funeral merchandise, and funeral services already received by,
delivered to, or warehoused for the purchaser.
(3) For the purposes of this paragraph “b”, “actual expenses” means all reasonable
business expenses of a seller that are associated with the sale of cemetery merchandise,
funeral merchandise, funeral services, or a combination thereof. “Actual expenses” includes
but is not limited to the following:
(a) Marketing and promotional expenses.
(b) Investment management fees.
(c) Annual reporting fees related to accounting and regulatory requirements.
(d) Licensing fees of the seller.
(e) Administration, regulatory reporting, and custody expenses related to purchase
agreements.
(f) Computer and software expenses.
(g) Expenses related to employees of the seller such as licensing fees, continuing
education, and salaries and commissions.
(h) Miscellaneous office expenses.
c. A purchase agreement must include a statement that the purchaser is entitled to a
refund of the purchase price of the applicable funeral merchandise adjusted for inflation,
using the consumer price index amounts announced by the commissioner annually for any
item of funeral merchandise that cannot be delivered to the location specified in the purchase
agreement within forty-eight hours of notice of the individual’s death, unless the delay is
caused by weather conditions or a natural disaster. The seller must return such refund to the
purchaser within thirty days of receiving the written demand.
3. This section does not prohibit a purchaser who is or may become eligible for benefits
under Tit. XIX of the federal Social Security Act from making a guaranteed price purchase
agreement irrevocable to the extent that federal law or regulations require that such an
agreement be irrevocable for purposes of a purchaser’s eligibility for benefits under Tit. XIX
25 CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES, §523A.701
of the federal Social Security Act, as permitted under federal law. The seller of credit sale
agreements shall comply with the requirements of chapter 537, the Iowa consumer credit
code,andissubjecttotheremediesandpenaltiesprovidedinthatchapterfornoncompliance.