Funeral Service - FTC Comps - 2022
What is the penalty per violation of the Funeral Rule?
$41,484 (this price changes so just know it is over $40,000) (This has just changed in 2016, if the Board has this question, it may have $16,000 as the answer. If you see this, go into the comments and let them know there has been a change.)
When discussing goods and services with anyone, which of the following is correct?
You must physically offer a GPL that can be kept
Which of the following statements is true regarding "Embalming" according to the Funeral Rule?
You must tell consumers that the law does not require embalming (All service fees and any equipment or facility charges for embalming must be in the itemized price for embalming. None of this can be added to the Basic Services Fee and the Basic Service Fee is only required to be included in the price for Forwarding Remains, Receiving Remains, Direct Cremation, and Immediate Burial.)
Which of the following is true about the required disclosures on the GPL?
You must use the identical wording that is in the Rule
( also referred to as removal) one of the 16 specified items required on the GPL; defined as the moving of the dead human body from the place of death to the funeral home or other designated place.
Transfer of remains
occurrence of situation that requires certain action i.e. the triggering event for giving out the GPL is face-to-face meeting.
Triggering event
A funeral home requires the purchase of one of their caskets before they will provide services. This type of requirement is called a?
Tying Arrangement
exist when a seller requires the purchase of unwanted items/services in order to obtain the desired item/service.
Tying arrangements
Which one of the following is NOT one of the FTC's 16 Mandatory Goods and Services:
Urn Price Range
(calling hours, visitation, visiting hours, wake) time set aside for friends and relatives to pay respect for the deceased prior to the funeral service.
Viewing
The charges for the hearse and limousine.
Any pricing method can be used (You can use a flat fee, an hourly charge, or a mileage charge. You can charge a flat fee with or without an additional mileage charge for distances beyond a certain radius. It cannot be added to the Basic Services Fee and you have to itemize these charges.)
The presentation of the Statement of Funeral Goods and Services to the family is to be made?
At conclusion of the funeral arrangements
Which of the following fees are allowed by the Funeral Rule?
Basic Services Fee (All extra fees must be covered by the Basic Services Fee or listed in one of the items required to be on the GPL)
What is the only fee that the consumer has to pay the funeral home (non-declinable)
Basic services fee
any item of service or merchandise described to a purchaser as a "cash advance," "accommodation," "cash disbursement," or similar item. A cash advance item is also any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf. Cash advance items may include, but are not limited to: cemetery or crematory services; pallbearers; public transportation; clergy honoraria; flowers; musicians or singers; nurses; obituary notices; gratuities and death certificates. [16 CFR 453.1(b)]
Cash Advance items
rigid container which is designed for the encasement of human remains and which is usually constructed of wood, metal, fiberglass, plastic, or like material, and ornamented and lined with fabric. [16 CFR 453.1(c)]
Casket
charge, fee or surcharge applied to consumers who purchase their casket from a source other than the funeral provider. (These fees are NOT allowed by the FTC Funeral Rule)
Casket handling fees
refers to the Federal Trade Commission. [16 CFR 453.1(d)]
Commission
heating process which incinerates human remains. [16 CFR 453.1(e)]
Cremation
any person, partnership or corporation that performs cremation and sells funeral goods. [16 CFR 453.1(f)]
Crematory
disposition of human remains by cremation, without formal viewing, visitation, or ceremony with the body present. [16 CFR 453(g)]
Direct cremation
Where should the embalming disclosure be placed on the GPL?
Directly next to the price for embalming
According to the FTC Funeral Rule, funeral homes that DO NOT offer direct cremations?
Do not have to list an alternative cremation container on the Casket Price List
The FTC Funeral Rule states that, concerning Cash Advance Items, funeral homes?
Do not have to tell people how much they marked up Cash Advance Items
date that the specific Price List was put into use.
Effective Date
If a family selects a funeral with a viewing, what may the funeral director explain to the family?
Embalming will temporarily preserve the body
Who is required to comply with the FTC Funeral Rule?
Everyone who sells funeral goods and services (Those selling only funeral goods and not services, such as a casket store, are not required to comply with the FTC)
situation requiring immediate action or urgency; FTC recognizes that funeral provider might embalm without permission. (see NFDA FTC Amended Funeral Rule Compliance Manual and 453.5(a)(3) for examples)
Exigent circumstances
The FTC has a Triggering Event that indicates when a general price list should be distributed. This triggering event is any inquiry into prices or merchandise that is:
Face-to-Face
agency of the federal government created in 1914 to promote free and fair competition by prevention of trade restraints, price fixing, false advertising and other unfair methods of competition.
Federal Trade Commission (FTC)
The Basic Service Fee must be included in which of the following services and cannot be charged separately?
Forwarding Remains Receiving remains Immediate Burial Direct Cremation
one of the categories required to be itemized on the GPL (if the funeral provider offers the service). This involves services of the funeral provider in the locale where death occurs and preparation for transfer to another funeral provider as selected by the family (consumer). Funeral Rule requires package pricing of this service with a description of the components included.
Forwarding of remains
Which of the following items on the GPL does the Rule require to include the Basic Services Fee in the individual price?
Forwarding remains, receiving remains, direct cremation, & immediate burial
none of the 16 items required to be separately itemized on the GPL can be listed as free or no charge. Items not required by the rule can be listed as free.
Free items
service commemorating the deceased with the body present (16 CFR 453.1(m); see also BM 2-16. Funeral Service)
Funeral Ceremony
goods which are sold or offered for sale directly to the public for use in connection with funeral services [16 CFR 453.1(h)]
Funeral goods
any person, partnership or corporation that sells or offers to sell funeral goods and funeral services to the public [16 CFR 453.1(1)]
Funeral provider
any services which may be used to: (1) care for and prepare deceased human bodies for burial, cremation or other final disposition; and (2) arrange, supervise or conduct the funeral ceremony or the final disposition of deceased human bodies. [16 CFR 453.1(j)]
Funeral services
According to the FTC Funeral Rule, which one of the following must be given for client retention?
General Price List
printed or typewritten list of goods and services offered for sale by a funeral provider with retail prices. GPL is considered the keystone of the Funeral Rule.
General Price List (GPL)
If you use a separate Outer Burial Container Price List, then you must.
Give the range of prices for the OBCs you sell on the GPL
If you use a separate Casket Price List, then you must.
Give the range of prices for the caskets you sell on the GPL
ceremony commemorating the deceased at place of final disposition (see also Committal service, FD Glossary, BM 2).
Graveside service
According to the FTC, Alternative Cremation Containers must?
Have no fixed interiors
Mr. Green made pre-need arrangements in 1980 and died in 2010. His wife wants to change the casket; which of the following is correct?
If there is any change, the funeral provider must comply with all of the Rule's requirements.
When can a funeral home charge separately for a graveside service?
If there is no funeral ceremony anywhere else (You can charge for a separate committal at the grave if you do not include it in the funeral ceremony charge. The staff and equipment charges should be together, NOT listed separately)
disposition of human remains by burial, without formal viewing, visitation, or ceremony with the body present, except for a graveside service. [16 CFR 453.1(k)]
Immediate burial
Where is the Right of Selection to be placed on the GPL?
Immediately above the prices of the goods and services
basic services is the only fee which the consumer cannot decline (unless state or local law requires otherwise). Funeral Provider should recover expenses for services, facilities or unallocated overhead in this charge.
Non-declinable service fee
Mr. Green made pre-need arrangements in 1980; which of the following applies?
Only pre-need contracts made after 1984 are under the Funeral Rule
printed or typewritten list of outer burial containers normally offered for sale by the funeral provider which do not require special ordering. OBC PL must include retail price and enough descriptive information to enable consumers to identify the merchandise.
Outer Burial Container Price List (OBC PL)
any container which is designed for placement in the grave around the casket including, but not limited to, containers commonly known as burial vaults, grave boxes, and grave liners.
Outer burial container
Which of the following statements is correct?
Package prices must include itemized prices of those goods
use of a single dollar amount to identify the charge for a group or bundle of goods and/or services (see also BM 3-22)
Package pricing
any individual, partnership. corporation, association, government of governmental subdivision or agency, or other entity.
Person
According to the FTC Funeral Rule, the casket price list must be given to consumers:
Prior to the funeral director showing caskets to the consumer
one of the categories required to be itemized on the GPL (if the funeral provider offers the service). This involves services of the funeral provider after initial services have been provided by another firm at the locale of death. Funeral Rule required package pricing of this service with a description of the components included.
Receiving remains
What is the first required disclosure on the GPL?
Right of Selection
basic services, not to be included in prices of other categories in Section 453.2(b)(4), that are furnished by a funeral provider in arranging any funeral, such as conducting the arrangements conference, planning the funeral, obtaining necessary permits, and placing obituary notices. [16 CFR 453.1(p)]
Services of Funeral Director and Staff
itemized written statement provided for retention to each person who arranges a funeral or other disposition. It must include the goods and services selected and prices paid for each, itemization of cash advance items and the total cost.
Statement of Funeral Goods and Services Selected
funeral provider must give consumers who call accurate information from the price lists and answer questions about offerings and prices with readily available information.
Telephone price disclosure
If the consumer provides their own casket purchased elsewhere, what can the funeral home do?
Tell the consumer that you do not carry a warranty should anything break (Casket Handling Fees are illegal; you cannot refuse to accept the casket, but since you did not sell them the casket, you are not responsible to take care of replacing it if anything breaks.)
If the State of Tennessee (or any State) provided an overall level of protection that is as great as, or greater than the protection provided by the Funeral Rule, which of the following agencies could apply to the Commission for a statewide exemption?
Tennessee State Board of Funeral Directors and Embalmers
According to the Funeral Rule, where are charges for sheltering of remains to be listed?
The Basic Services Fee (A separate charge for sheltering may be listed if most of your customers do not use the funeral home to hold the remains or if you receive a request to hold the remains for an unusually long period of time)
If you are preparing a GPL for pre-need sales, which of the following statements is correct?
The GPL must include all disclosures and be itemized
What is the "Keystone" of the Funeral Rule?
The General Price List
If a cemetery does not require an outer burial container, what are the FTC requirements for the funeral director?
The OBC price list must contain the disclosure that the family is not required to purchase a container.
If the funeral provider uses a third party crematory, which of the following statements is true?
The cremation charge may be listed as a cash advance item (If you use this charge as a cash advance item, do not include the words "and cremation" in your GPL's description of what you provide for direct cremation and clearly explain that the added crematory charge will be estimated or itemized in the Statement of Funeral Goods and Services Selected)
The GPL must contain the business name, address, phone number(s), and the caption "General Price List." What other identifying information must be included?
The effective date of the GPL
If you provide a Casket Price List, what disclosure must be stated on the GPL?
A complete price list will be provided at the funeral home
ceremony commemorating the deceased without the body present. [16 CFR 453.1(1)] (see also SS 1-7)
Memorial Service
The FTC Funeral Rule states that, concerning telephone price inquiries, funeral homes:
Must give accurate pricing information
Gene does not sell any funeral merchandise at his funeral home. Instead, he sends all of the families he serves to buy funeral merchandise from his neighbor's casket/urn store. Would Gene be required to follow the FTC Funeral Rule?
No, Gene sells only funeral services
What is the triggering event for giving out the General Price List?
A face to face meeting at the beginning of any discussion about goods or services
statements required by the Rule which cannot by modified or edited and must appear in a clear and conspicuous manner.
Mandatory disclosures
Which one of the following would be an exception to the FTC Funeral Rules prohibition against tying arrangements?
Non-declinable Basic Service Fee
How many specified items of goods and services must be listed on the GPL?
16
How many disclosures are required on the Statement of Funeral Goods and Services Selected?
3
How many disclosures are required to be made on the GPL?
6
How must prices for goods and services be listed on the Statement of Funeral Goods and Services Selected?
All services and goods must be itemized even if packaged
price lists which may be prepared for use in certain limited situations such as children/infants, for government agencies to provide for indigent persons, for agreements with religious groups, burial or memorial societies for members of their group.
Alternative Price Lists
Which of the following statements is true about the Funeral Rule?
Alternative Price Lists can be used for special groups (Alternative Price Lists can be used for Children & Infants, government agencies, and Religious Groups & Memorial Societies. These price lists must comply with all Rule provisions including mandatory disclosures.)
unfinished wood box or other non-metal receptacle or enclosure, without ornamentation or a fixed interior lining, which is designed for the encasement of human remains and which is made of fiberboard, pressed-wood, composition materials (with or without an outside covering) or like materials. [16 CFR 453.1(a)]
Alternative container
If a funeral home offers direct cremation, what must be available for the consumer?
Alternative containers
If State or local law does not require consumers to buy an outer burial container, what must the funeral director disclose?
Many cemeteries require an OBC so the grave will not sink in
Listing of all goods and services and their prices individually on a Statement of Goods and Services is called:
Itemization
Listing of individual goods and services provided with corresponding prices for each is called?
Itemization
method of price quotation by which each unit of service and/or merchandise is priced separately.
Itemization
Where would the charge be located on the GPL for washing and disinfecting a body that is NOT being embalmed?
Itemized under "Other Preparation of the Body"
Which of the following are disclosures that must be placed on the Statement of Funeral Goods and Services Selected?
Legal Requirements Embalming Cash Advance Items
Which one of the following is NOT one of the FTC's 6 Mandatory General Price List Disclosures?
Limousine Availability
When charging for facilities and staff for a viewing, funeral, or memorial service, how should the charges be listed?
List the charge for facilities and staff separately only if these services are held away from the funeral home (Always list the charge for facilities and staff together if they are at the funeral home; but list the charge separately if the service is held away from the funeral home at another facility such as a church. You can charge a flat rate or an hourly fee.)
If the consumer does not want to accept or look at the GPL, what is the Funeral Director required to do?
The funeral director is not required to do anything else
Which of the following statements is true regarding Transfer of remains to the funeral home?
The funeral home can choose any pricing method
If the funeral home receives a rebate from a florist or any business for cash advance items ordered for the family?
The funeral home must disclose the amount of the rebate and inform the family that the rebate was not passed on to them
What must the funeral provider make clear on the GPL for immediate burials?
The purchaser may provide the casket (You are not required to make an alternative casket available and you can use a separate Casket Price List)
Which of the following statements is true regarding what the Funeral Director must tell the family about embalming?
They may have to pay for embalming for a funeral with viewing
funeral goods consumers purchase from a source other than the funeral provider.
Third party merchandise
If someone calls the funeral home asking about the prices of goods and services, which of the following is correct?
You are not required to mail a GPL (Some States may require this, but it is not a requirement of the FTC Funeral Rule)
Mr. Stone made pre-need arrangements but his wife wants to change the casket and services. Which of the following is true?
You must give a GPL before discussions and Casket Price List before she looks at caskets
