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 door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?

A. There is no problem with Fred's actions so long as he truly gives specific notice that he will not agree to any cancellations.

B. Fred must give customers at least 24 hours in which to cancel such a contract, but that is only because funeral services are involved.

C. There is no problem with Fred's actions even if he does not give specific notice that he will not agree to any cancellations.

D. Because door-to-door sales are involved, Fred must give consumers 24 hours in which to cancel.

E. Because door-to-door sales re involved, consumers must have three days in which to cancel purchases.

Answer

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