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Why is it important to have clear cancellation and refund policies documented in a system design?

easy🧠 Conceptual Q10 of Q15
LLD - Design — Hotel Booking System
Why is it important to have clear cancellation and refund policies documented in a system design?
ATo increase server CPU usage
BTo confuse users with complex rules
CTo ensure consistent user experience and legal compliance
DTo reduce the number of users
Step-by-Step Solution
Solution:

  1. Step 1: Identify benefits of clear policies

    Clear policies help users understand their rights and system behavior.

  2. Step 2: Recognize legal and UX importance

    They ensure fairness, reduce disputes, and comply with laws.

  3. Final Answer:

    To ensure consistent user experience and legal compliance -> Option C

  4. Quick Check:

    Policy clarity = Consistency + compliance [OK]
Quick Trick: Clear policies ensure fairness and compliance [OK]
Common Mistakes:
MISTAKES
  • Thinking policies increase server load
  • Assuming policies confuse users
  • Believing policies reduce user base

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