Question

The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which a recent death has occurred because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of requiring a complete package purchase from him if the consumer desires any funeral services?

a. That practice is prohibited by federal law unless Fred gives a 10% discount as compared to the average price of funeral services in hls state.
b. That practice is prohibited by federal law unless Fred gives a 20% discount as compared to the average price of funeral services in his state.
c. There is no problem with that practice under federal law so long as Fred informs customers of that prior to entering into any sales talk and negotiation.
d. There is no problem with that practice under federal law.
e. That practice is prohibited by federal law.

Answer 1

e. That practice is prohibited by federal law.

Step-by-step explanation:

This practice that fred engages on is prohibited by federal law. I'm other to put an end to funeral homes taking advantage of their customers, the 1983 general rule was made by the federal trade commission. The law requires that all customers get adequate information about the services that they are to get from a funeral provider.