BMS Mortuary and Business Law 2 — Questions and Answers
Question 1: Under the FTC Funeral Rule, which document must be offered to any person who inquires in person about funeral arrangements?
- General Price List (Correct answer)
- Itemized Statement of Funeral Goods and Services
- Casket Price List
- Outer Burial Container Price List
Correct answer: General Price List
The FTC Funeral Rule requires funeral homes to offer a General Price List to anyone who inquires in person about funeral arrangements or the prices of funeral goods or services.
Question 2: A funeral home licensee who also holds a separate embalming license in the same state is operating under what type of licensing structure?
- Dual licensure (Correct answer)
- Reciprocal licensure
- Endorsement licensure
- Concurrent licensure
Correct answer: Dual licensure
Dual licensure refers to holding two separate licenses — such as a funeral director license and an embalmer license — within the same jurisdiction.
Question 3: Which legal doctrine holds a funeral home employer liable for the negligent acts of an employee performed within the scope of employment?
- Respondeat superior (Correct answer)
- Res ipsa loquitur
- Caveat emptor
- Stare decisis
Correct answer: Respondeat superior
Respondeat superior ('let the master answer') makes employers vicariously liable for torts committed by employees acting within the scope of their employment.
Question 4: A decedent's estate has insufficient assets to pay all debts. Which creditor class is generally paid FIRST under U.S. law?
- Secured creditors
- Funeral and burial expenses (Correct answer)
- Federal income taxes
- Unsecured general creditors
Correct answer: Funeral and burial expenses
In most U.S. states, reasonable funeral and burial expenses are given priority and paid before most other unsecured debts from the decedent's estate.
Question 5: Which federal agency enforces the Funeral Rule that regulates funeral industry pricing disclosures?
- Federal Trade Commission (FTC) (Correct answer)
- Centers for Medicare & Medicaid Services (CMS)
- Occupational Safety and Health Administration (OSHA)
- Environmental Protection Agency (EPA)
Correct answer: Federal Trade Commission (FTC)
The Federal Trade Commission enacted and enforces the Funeral Rule (16 CFR Part 453), which mandates itemized pricing disclosures in the funeral industry.
Question 6: An embalmer discovers the deceased was HIV-positive after beginning the procedure. Under OSHA standards, what standard governs the required precautions?
- Bloodborne Pathogens Standard (29 CFR 1910.1030) (Correct answer)
- Hazard Communication Standard (29 CFR 1910.1200)
- Respiratory Protection Standard (29 CFR 1910.134)
- Personal Protective Equipment Standard (29 CFR 1910.132)
Correct answer: Bloodborne Pathogens Standard (29 CFR 1910.1030)
OSHA's Bloodborne Pathogens Standard requires funeral homes to have exposure control plans, use universal precautions, and provide PPE when handling potentially infectious materials.
Question 7: A funeral home advertises 'lowest prices in the county' without substantiation. Under the FTC Act, this could constitute:
- Unfair or deceptive trade practice (Correct answer)
- Breach of fiduciary duty
- Tortious interference
- Unjust enrichment
Correct answer: Unfair or deceptive trade practice
Unsubstantiated superiority claims in advertising can constitute an unfair or deceptive act or practice under Section 5 of the FTC Act.
BMS Mortuary and Business Law 2
Under the FTC Funeral Rule, which document must be offered to any person who inquires in person about funeral arrangements?