The Burial Emporium.Fred operates a funeral home called Fred's Burial Emporium.Fred likes to keep things simple.He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever.Fred also goes door-to-door selling funeral packages.He tries to visit neighborhoods in which a recent death has occurred 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.Fred 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.After some pesky consumer complaints,the Federal Trade Commission and other federal agencies investigate Fred.He hires a good lawyer with his profits in an attempt to stay out of trouble.Which of the following is true regarding Fred's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?

Question

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In most door-to-door sales,the consumer does not have a chance to compare products and services to find the best service for his or her money.In addition,many consumers find it difficult to escape a salesperson in their homes.It is much easier to walk out of a store.Because the consumer is in a particularly vulnerable position in a door-to-door sale,the Federal Trade Commission (FTC)has created special rules for such sales.
The FTC created the Cooling-Off Rule,giving consumers three days to cancel purchases they make from salespeople who come to their homes.Moreover,the salesperson must notify the consumer,both verbally and in writing,that the sales transaction may be canceled.The FTC rule also requires the consumer to be notified in writing in the same language in which the oral negotiations were conducted,thereby preventing unscrupulous businesses from taking advantage of non-English speakers.