[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 requiring a complete package purchase from him if the consumer desires any funeral services, which of the following statements is true?

A) There is no problem with that practice under federal law.
B) There is no problem with that practice under federal law so long as Owen informs customers of that prior to entering into any sales talk and negotiation.
C) That practice is prohibited by federal law.
D) That practice is prohibited by federal law unless Owen gives a 10% discount as compared to the average price of funeral services in his state.
E) That practice is prohibited by federal law unless cremation services are involved in which case Owen may link the cremation services with the purchase of other goods and services because cremation in and of itself results in little profit.