week4

Question 1

statement of goods and services (3)

Answer 1

• legal document between FH and family
• must include;
  1. itemized written statement IDing the goods and services and the prices of each
  2. specifically itemized cash advances
  3. total cost to the consumer of all items
• no specific format, but should be similar to GPL so consumer can compare
• dont put cemetery fees on contract

Question 2

disclosures for statement of goods and services

Answer 2

1. legal, cemetery, crematory requirements
2. embalming
3. cash advances

• Identical wording as described in the “rule” and it must be placed as the RULE describes in a conspicuous manner
• statement of goods and services must be given to the consumer at time of arrangements
• giving the consumer their copy on the funeral day or mailed a day later is illegal**

Question 3

misrepresentations of embalming

Answer 3

1. may not say embalming is required by law if its not accurate
2. if the state or local law does require it, you may tell the family that it is required due to special circumstances
3. if state/law doesn’t require embalming, you may not tell them that it is required for “practical purposes” when they want direct cremation, immediate burial or when refrigeration is available.

Question 4

misrepresentations of casket for direct cremation

Answer 4

1. you cannot tell the consumer that state/local law requires the purchase of a casket for direct cremation
2. you cannot tell them with direct cremations that they must buy a casket for any other reason
   - if you offer direct cremation you must offer an alternative container

Question 5

misrepresentations of outer burial containers

Answer 5

1. cannot tell a family that state/local law requires the use of an outer burial container
2. you must tell them that state/local law does not require the use of an outer burial container and you do this with the required disclosure
3. you cannot tell a consumer that a particular cemetery requires an outer container if it does not

Question 6

misrepresentations of legal and cemetery requirements

Answer 6

1. you cannot tell a consumer that any federal, state, or local law requires them to buy a good or service if it is not true
2. if it is true it must be explained on the statement of funeral goods and services

Question 7

misrepresentations of preservative and protective value claims

Answer 7

1. you may not tell a family that any goods or services will delay decomposition of human remains for a long term or indefinite time.
2. you cannot tell a consumer that caskets or vaults have protective features or will protect the body when that is not true
3. you must make all warranty information available to the consumer. However, make it clear that the warranties are that of the manufacturer and not your warranties

Question 8

misrepresentations of cash advanced items

Answer 8

1. if you received any commission, trade, or volume discount or rebate on any cash advance items you cannot claim that the cost is the same as you are paying
2. if you receive any commission, trade or volume discount, or rebate on any cash advance items you must tell the consumer that the price is not the same as the cost
3. you may add service charges to the cash advances without revealing the amount (some states don’t allow this)

Question 9

requirements for tying arrangements

Answer 9

1. cannot require consumers to buy unwanted or unneeded goods and services to get items that they do want
2. cannot place conditions of purchase on goods or services to provide other goods and services (except basic services fee or items required by law)
   - cannot alter prices based on the particular selection of each consumer

Question 10

exceptions for tying arrangments

Answer 10

1. the non declinable basic service fee
   - items required by law
   - impossible, excessive or impractical

Question 11

retention of paperwork

Answer 11

1. GPL must be retained for one year after the last day of distribution
2. completed and signed statement goods and services for each client family must be retained for at least one year from the date of the arrangement conference.
3. all documents must be available for inspection by the commission
4. state/local laws can be much longer than this, refer to them for exact lengths for retention

Question 12

state exemptions

Answer 12

• states may apple to the FTC for exemptions for the Rule

1. if the state has a requirement in effect that applied to the same transactions that the rule covers
2. the state requirement provides an overall level of protection that is equal to or exceeds the protection offered by the rule

• if the state is granted an exemption, you must comply
• if there is no exemption, you must comply to FTC and state regulations
• if the state regulations are more stringent than the FTC you must comply with the state