Tennessee Funeral Service Laws Rules & Regulations (LRR) Practice Exam

Which of the following is a valid reason for the Board to grant, suspend, revoke, or refuse to renew licenses?

1. Misrepresentation or fraud by the establishment

2. Emergency situation leading to misconduct

3. Increased competition in the area

4. Refusal to offer discount rates

The correct answer is: Misrepresentation or fraud by the establishment

The valid reason for the Board to grant, suspend, revoke, or refuse to renew licenses is misrepresentation or fraud by the establishment. This action is taken because maintaining the integrity of the funeral service industry is paramount. Misrepresentation or fraudulent activities directly undermine trust between the establishments and the public. This can include any inaccurate statements made by the establishment regarding services, pricing, or qualifications that could mislead consumers. Other scenarios, like an emergency situation leading to misconduct, may elicit understanding or leniency rather than punitive action, as they can be seen as extenuating circumstances. Increased competition in the area does not directly impact a license's legitimacy or operation standing. Similarly, a refusal to offer discount rates is a business decision and not inherently related to ethical or legal violations. Therefore, these options do not meet the established criteria that would warrant disciplinary action by the Board.