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[The Funeral Outlet] Owen Operates a Funeral Home Called Owen's

Question 87

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[The Funeral Outlet] Owen operates a funeral home called Owen's Funeral Outlet. Owen likes to keep things simple. He generally has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Owen 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. Owen 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. Sometimes, Owen varies his sales tactic and tells consumers he talks to on the phone aspects of the total cost in small increments, not mentioning the total price, believing that if they are tired, they are less likely to ask too many questions. After many consumer complaints, the Federal Trade Commission and other federal agencies investigate Owen. He hires a good lawyer with his profits in an attempt to stay out of trouble.
-Regarding Owen's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services, which of the following statements is true?


A) There is no problem with Owen's actions so long as he truly gives specific notice that he will not agree to any cancellations.
B) Owen 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 Owen'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, Owen must give consumers 24 hours in which to cancel.
E) Because door-to-door sales are involved, consumers must have three days in which to cancel purchases.

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