Bird
Raised Fist0
LLDsystem_design~10 mins

Cancellation and refund policy in LLD - Interactive Code Practice

Choose your learning style10 modes available

Start learning this pattern below

Jump into concepts and practice - no test required

or
Recommended
Test this pattern10 questions across easy, medium, and hard to know if this pattern is strong
Practice - 5 Tasks
Answer the questions below
1fill in blank
easy

Complete the code to define the cancellation status in the policy class.

LLD
class CancellationPolicy:
    def __init__(self):
        self.status = '[1]'
Drag options to blanks, or click blank then click option'
Aactive
Bcancelled
Cpending
Drefunded
Attempts:
3 left
💡 Hint
Common Mistakes
Choosing 'cancelled' as initial status which means policy is inactive.
2fill in blank
medium

Complete the method to check if a refund is allowed based on the policy status.

LLD
def can_refund(self):
    return self.status == '[1]'
Drag options to blanks, or click blank then click option'
Aactive
Bexpired
Ccancelled
Drefunded
Attempts:
3 left
💡 Hint
Common Mistakes
Using 'active' which means policy is still valid.
3fill in blank
hard

Fix the error in the refund calculation method to correctly compute refund amount.

LLD
def calculate_refund(self, amount):
    if self.status == 'cancelled':
        return amount [1] 0.8
    else:
        return 0
Drag options to blanks, or click blank then click option'
A*
B+
C-
D/
Attempts:
3 left
💡 Hint
Common Mistakes
Using '+' or '-' which changes the amount incorrectly.
4fill in blank
hard

Fill both blanks to complete the policy update method that sets status and logs the change.

LLD
def update_policy(self, new_status):
    self.status = [1]
    print('Policy status changed to', [2])
Drag options to blanks, or click blank then click option'
Anew_status
B'new_status'
Cself.status
D'self.status'
Attempts:
3 left
💡 Hint
Common Mistakes
Using string literals instead of variables.
5fill in blank
hard

Fill all three blanks to complete the refund eligibility check with time and status conditions.

LLD
def is_refund_eligible(self, days_since_purchase):
    return self.status == [1] and days_since_purchase [2] [3]
Drag options to blanks, or click blank then click option'
A'cancelled'
B<=
C30
D>
Attempts:
3 left
💡 Hint
Common Mistakes
Using wrong comparison operators or status strings.

Practice

(1/5)
1. What is the primary purpose of a cancellation and refund policy in a system?
easy
A. To define rules for stopping services and returning money
B. To increase the price of products
C. To track user login times
D. To manage database backups

Solution

  1. Step 1: Understand the role of cancellation policies

    Cancellation and refund policies set clear rules about when and how users can stop services and get money back.
  2. Step 2: Eliminate unrelated options

    Options about pricing, login times, or backups do not relate to cancellation or refunds.
  3. Final Answer:

    To define rules for stopping services and returning money -> Option A
  4. Quick Check:

    Cancellation policy = service stop rules [OK]
Hint: Cancellation policies define service stop and refund rules [OK]
Common Mistakes:
  • Confusing cancellation policy with pricing strategy
  • Thinking it manages user authentication
  • Assuming it handles technical backups
2. Which of the following is a correct component to include in a cancellation policy data model?
easy
A. login_attempts: int
B. user_password: string
C. product_price: float
D. allowed_cancellation_time: datetime

Solution

  1. Step 1: Identify relevant data for cancellation policy

    The allowed cancellation time defines until when a user can cancel and get a refund.
  2. Step 2: Exclude unrelated fields

    User password, product price, and login attempts are unrelated to cancellation timing.
  3. Final Answer:

    allowed_cancellation_time: datetime -> Option D
  4. Quick Check:

    Cancellation policy needs cancellation time [OK]
Hint: Cancellation policy needs allowed cancellation time field [OK]
Common Mistakes:
  • Including unrelated user or product fields
  • Confusing cancellation time with login data
  • Using incorrect data types for time
3. Given this pseudocode for refund calculation:
if cancellation_time <= allowed_cancellation_time:
    refund_amount = full_price
else:
    refund_amount = 0
print(refund_amount)

What will be printed if cancellation_time is after allowed_cancellation_time?
medium
A. Error
B. full_price
C. 0
D. null

Solution

  1. Step 1: Analyze the condition

    If cancellation_time is after allowed_cancellation_time, the else branch runs.
  2. Step 2: Determine refund amount

    In else, refund_amount is set to 0, so 0 will be printed.
  3. Final Answer:

    0 -> Option C
  4. Quick Check:

    Late cancellation = zero refund [OK]
Hint: Late cancellations get zero refund [OK]
Common Mistakes:
  • Assuming refund is full regardless of time
  • Expecting an error due to condition
  • Confusing variable names
4. Identify the bug in this refund policy code snippet:
def calculate_refund(cancellation_time, allowed_time, price):
    if cancellation_time > allowed_time:
        refund = price
    else:
        refund = 0
    return refund
medium
A. Price variable is not used
B. Refund is given after allowed time instead of before
C. Function does not return any value
D. Refund is always zero

Solution

  1. Step 1: Understand refund logic

    Refund should be given if cancellation_time is before or equal to allowed_time.
  2. Step 2: Check condition logic

    Current code gives refund if cancellation_time is after allowed_time, which is incorrect.
  3. Final Answer:

    Refund is given after allowed time instead of before -> Option B
  4. Quick Check:

    Refund condition reversed = bug [OK]
Hint: Refund condition must check cancellation before allowed time [OK]
Common Mistakes:
  • Reversing the refund condition
  • Ignoring return statement
  • Misusing price variable
5. You are designing a cancellation and refund system for an online booking platform. Which approach best balances user trust and system scalability?
hard
A. Allow partial refund based on how close cancellation is to booking time
B. Allow full refund anytime, no restrictions
C. Allow full refund only if cancellation is made 24 hours before booking time, else no refund
D. Never allow refunds to avoid complexity

Solution

  1. Step 1: Consider user trust

    Partial refunds based on cancellation timing show fairness and flexibility, building trust.
  2. Step 2: Consider system scalability

    Partial refund rules can be implemented with clear logic and scale well without manual intervention.
  3. Step 3: Evaluate other options

    Full refund anytime is costly; no refunds reduce trust; strict cutoff is less flexible.
  4. Final Answer:

    Allow partial refund based on how close cancellation is to booking time -> Option A
  5. Quick Check:

    Partial refund balances trust and scalability [OK]
Hint: Partial refunds balance fairness and system load best [OK]
Common Mistakes:
  • Choosing no refund which harms user trust
  • Allowing full refund anytime which is costly
  • Using strict cutoff without flexibility