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

Multiple Choice

[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 practice of telling potential customers on the telephone costs in small increments without revealing the total price, which of the following statements is true?

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, a telemarketer must tell the total price of goods being sold.
C) According to a rule of the Federal Trade Commission, a telemarketer must only give the total price if the consumer directly inquires about that matter. Therefore, it is smart for Owen to call when people are tired and less likely to ask questions.
D) According to a rule of the Federal Trade Commission rule that is specific to funeral home directors, direct phone solicitation may not be made; therefore, Owen is in violation.
E) According to a rule of the Federal Trade Commission that is specific to funeral home directors, direct phone solicitation must include the total price of any services offered; therefore, Owen is in violation.