[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 tactic of offering one flat price for funeral services with no itemization, which of the following statements is true?

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 all situations involving a mix of goods and services.
D) That practice is prohibited under federal law in all situations involving a mix of goods and services costing $5,000 or more.
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.