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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 there has been a recent death 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 offering one flat price for funeral services with no itemization?
A. Federal law does not prohibit that practice.
B. That practice is prohibited under federal law in funeral home situations.
C. That practice is prohibited under federal law in funeral home situations only if there is no other funeral home within 20 miles.
D. That practice is prohibited under federal law in funeral home situations only if there is no other funeral home within 10 miles.
E. That practice is prohibited by federal law unless consumers receive a 10% discount as compared to the average price of funeral services in his state.
Answer
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