BMS FREE BMS Mortuary And Business Law Questions and Answers 2 — Questions and Answers
Question 1: Which federal regulation requires funeral homes to provide itemized pricing to consumers before they select services?
- The FTC Funeral Rule (Correct answer)
- The Consumer Protection Act
- The Fair Credit Reporting Act
- The Uniform Commercial Code
Correct answer: The FTC Funeral Rule
The FTC Funeral Rule mandates that funeral providers give consumers itemized price lists for goods and services.
Question 2: Under the Uniform Anatomical Gift Act, who has the primary legal authority to authorize organ donation if the decedent left no documented wishes?
- The decedent's spouse (Correct answer)
- The attending physician
- The local coroner
- The funeral director
Correct answer: The decedent's spouse
The Uniform Anatomical Gift Act designates the surviving spouse as the first priority for authorizing anatomical gifts when the decedent has not made a prior declaration.
Question 3: A funeral home that misrepresents embalming as legally required when it is not could face penalties under which area of law?
- Consumer protection and deceptive trade practices (Correct answer)
- Criminal homicide statutes
- Environmental protection law
- Real property law
Correct answer: Consumer protection and deceptive trade practices
Misrepresenting the legal necessity of embalming constitutes a deceptive trade practice subject to consumer protection enforcement.
Question 4: What is the legal term for a funeral director's obligation to handle a decedent's remains with proper care and respect?
- Fiduciary duty of care (Correct answer)
- Sovereign immunity
- Eminent domain
- Attractive nuisance
Correct answer: Fiduciary duty of care
Funeral directors owe a fiduciary duty of care to both the decedent and the contracting family to handle remains with dignity and competence.
Question 5: Which type of business structure offers a funeral home owner personal liability protection while allowing pass-through taxation?
- Limited Liability Company (LLC) (Correct answer)
- Sole proprietorship
- General partnership
- C corporation
Correct answer: Limited Liability Company (LLC)
An LLC provides its owners with personal liability protection while typically allowing profits and losses to pass through to individual tax returns.
Question 6: In most U.S. states, what is the standard statute of limitations for filing a breach-of-contract claim against a funeral home?
- Three to six years depending on the state (Correct answer)
- Thirty days from the date of burial
- One year from the date of death
- No time limit applies
Correct answer: Three to six years depending on the state
Most states set the statute of limitations for written contract disputes at three to six years from the date of the breach.
Which federal regulation requires funeral homes to provide itemized pricing to consumers before they select services?