Funeral Service Test Funeral Home Business Management and Operations 1 — Questions and Answers
Question 1: Under the FTC Funeral Rule, funeral homes are required to provide a General Price List (GPL) to consumers at what point?
- Only after a contract is signed
- Upon beginning in-person arrangements (Correct answer)
- Only when requested by the consumer
- At the time of final billing
Correct answer: Upon beginning in-person arrangements
The FTC Funeral Rule mandates that funeral homes offer the GPL at the start of any in-person discussion of funeral arrangements.
Question 2: Which document must a funeral home provide that itemizes every available funeral good and service along with its price?
- Statement of Funeral Goods and Services Selected
- General Price List (Correct answer)
- Casket Price List
- Outer Burial Container Price List
Correct answer: General Price List
The General Price List (GPL) is the comprehensive document required by the FTC Funeral Rule that lists all goods and services with individual prices.
Question 3: What is the primary purpose of the Statement of Funeral Goods and Services Selected given to the next of kin?
- To provide an itemized record of all chosen goods and services and their costs (Correct answer)
- To authorize embalming
- To satisfy cemetery requirements
- To document the cause of death
Correct answer: To provide an itemized record of all chosen goods and services and their costs
The Statement of Funeral Goods and Services Selected is an itemized written contract detailing the specific goods and services chosen and their individual prices.
Question 4: Under the FTC Funeral Rule, how long must funeral homes retain price list records?
- One year
- Two years
- Three years (Correct answer)
- Five years
Correct answer: Three years
The FTC Funeral Rule requires funeral homes to keep copies of price lists for at least three years from the date they were last distributed.
Question 5: Which of the following best describes 'unbundling' in funeral service?
- Combining all services into one flat fee
- Allowing consumers to select and pay only for services they choose (Correct answer)
- Packaging casket and service costs together
- Offering a discount for prepaid funerals
Correct answer: Allowing consumers to select and pay only for services they choose
Unbundling means consumers can select individual goods and services rather than being required to purchase a pre-packaged arrangement.
Question 6: Which federal agency enforces the Funeral Rule that governs funeral home pricing disclosures?
- FDA
- OSHA
- FTC (Correct answer)
- EPA
Correct answer: FTC
The Federal Trade Commission (FTC) enforces the Funeral Rule, which protects consumers from deceptive funeral pricing practices.
Under the FTC Funeral Rule, funeral homes are required to provide a General Price List (GPL) to consumers at what point?