Regarding Owen's Practice of Telling Potential Customers on the Telephone

question 60

Multiple Choice

Regarding Owen's practice of telling potential customers on the telephone costs in small increments without revealing the total price,which of the following statements is true?

• A)According to a rule of the Federal Trade Commission rule that is specific to funeral home directors,direct phone solicitation may not be made;therefore,Owen is in violation.
• B)Under federal law there is no problem with his practice because any consumer who does not want to talk to him can simply hang up.
• C)According to a rule of the Federal Trade Commission,a telemarketer must only give the total price if the consumer directly inquires about that matter.Therefore,it is smart for Owen to call when people are tired and less likely to ask questions.
• D)According to a rule of the Federal Trade Commission,a telemarketer must tell the total price of goods being sold.
• E)According to a rule of the Federal Trade Commission that is specific to funeral home directors,direct phone solicitation must include the total price of any services offered;therefore,Owen is in violation.

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Definitions:

Actual Notice

The direct and explicit knowledge given to a person about a specific piece of information, ensuring they are aware of it.

Constructive Notice

Legal notice presumed by law to have been acquired by a person and thus binding on that person, regardless of actual knowledge of the notice.

Subagent

An agent appointed by another agent with the original principal's authorization, typically to help perform some duty or function.

Apparent Authority

The appearance or assumption of authority based on the actions or representations of the principal.