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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 doing telephone solicitations late at night after people are tired?
A. Under federal law there is no problem with his practice because any consumer who does not want to talk to him can simply hang up.
B. According to a rule of the Federal Trade Commission, if a telemarketer calls a residence after 9 p.m., the telemarketer is engaging in abusive behavior; therefore, Fred is in violation.
C. According to a rule of the Federal Trade Commission, if a telemarketer calls a residence after 8 p.m., the telemarketer is engaging in abusive behavior; therefore, Fred is not in violation.
D. According to a rule of the Federal Trade Commission that is specific to funeral home directors, direct phone solicitation may not be made; therefore, Fred is in violation.
E. According to a rule of the Federal Trade Commission that is specific to funeral home directors, direct phone solicitation may not be made after 7 p.m.; therefore, Fred is in violation.
Answer
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