Legal Question in Business Law in Vermont

Re: Taking money for a service before it is performed

Yes. Many hotels, airlines and other time sensitive services (dentists,etc.) have a "cancellation fee" if the client is a no show. Usually this must be made clear up front, for the consumer is usually getting a better deal by booking a "no refund" or non-cancellation deal well in advance. If the policy is clear, the deposit may be non-refundable, since most hotels/airlines can't re-book the seat/room at the last minute.

Most hotels have a set cancellation policy which allows the reserved monies to be refunded if sufficient notice is given, but it is not required that deposits are refundable. States vary on the legal aspects here, so check the individual state to determine policy and rules.