Michigan Compiled Laws
Act 255 of 1986 - Prepaid Funeral and Cemetery Sales Act (328.211 - 328.235)
Section 328.228 - Prohibited Conduct; Rules; Administrative Action.

Sec. 18.
(1) Notwithstanding any other law to the contrary, a person selling or offering to sell merchandise or funeral or cemetery services, whether a registrant or not, shall not do any of the following:
(a) Solicit a specific person for the purpose of providing merchandise or funeral or cemetery services for a prospective contract beneficiary knowing that the death of the prospective contract beneficiary has already occurred or is probably imminent.
(b) Make a false or misleading statement, oral or written, regarding the sale of merchandise or funeral or cemetery services pursuant to a prepaid contract or regarding the rights or obligations of any party or prospective party to a prepaid contract for the purpose of inducing a person to purchase the merchandise or funeral or cemetery services or a prepaid contract.
(c) Advertise or offer merchandise or funeral or cemetery services for sale before the death of a prospective contract beneficiary in a manner which is false, misleading, deceptive, or unfair.
(d) Fail to refund principal or principal and income paid for a prepaid contract in violation of this act.
(e) Refuse the use of merchandise bought from another vendor or discriminate by price, burial fee, or otherwise for not purchasing merchandise from or under the direction of the funeral establishment or cemetery. This subdivision does not prohibit a cemetery from adopting and enforcing consistent rules and regulations to be followed by both the cemetery and outside vendors as to the quality, size, shape, type, installation, and maintenance of a grave memorial or a cemetery burial vault or other outside container or urn, except that such regulations may not limit as to supplier or vendor.
(f) Require the purchase of a cemetery burial vault or other outside container from a particular person as a condition to burial in a cemetery in this state. However, this subsection does not limit the right of a cemetery to require the use of a cemetery burial vault or other outside container.
(g) Violate this act or rules promulgated under this act.
(2) A registrant or a person acting on behalf of a registrant, including an agent or employee of a registrant, shall not do any of the following:
(a) Practice fraud, or deception in obtaining registration.
(b) Refuse to disclose books and records required to be maintained and disclosed under this act.
(3) The director of the department may promulgate rules regulating the solicitation of prepaid contracts by registrants to protect against solicitations which are intimidating, vexatious, fraudulent, or misleading or which take unfair advantage of a person's ignorance or emotional vulnerability.
(4) Any administrative action brought under this act shall be in compliance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
History: 1986, Act 255, Eff. July 1, 1987 ;-- Am. 2004, Act 21, Eff. Jan. 1, 2005 Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 328 - Dead Human Bodies

Act 255 of 1986 - Prepaid Funeral and Cemetery Sales Act (328.211 - 328.235)

Section 328.211 - Short Title.

Section 328.212 - Meanings of Words and Phrases.

Section 328.213 - Definitions; B to D.

Section 328.214 - Definitions; D to M.

Section 328.215 - Definitions; N to U.

Section 328.216 - Certificate of Registration to Sell, Provide, or Agree to Provide Merchandise or Services Pursuant to Prepaid Contract; Application; Fee; Duration of Certificate; Contents of Application Form; Renewal of Registration; Sworn Statemen...

Section 328.217 - Deposit of Funds With Escrow Agent; Agreement to Allow Inspection and Copying of Records.

Section 328.218 - Accounts, Books, and Records; Special Report; Examination; Corrective or Penal Action; Examination, Review, or Audit of Books and Records; Authorization of Escrow Agents to Open Records; Statement in Lieu of Special Report.

Section 328.219 - Notice of Purchase or Assignment of Business Operations or Prepaid Contracts.

Section 328.220 - Nonguaranteed or Guaranteed Price Contracts; Execution.

Section 328.221 - Guaranteed Price Contract; Requirements.

Section 328.222 - Funds to Be Held in Escrow by Escrow Agent; Additional Commission Not Subject to Depository Requirements; Commission if Contract Price Paid in Installments; Refund; Qualifications and Selection of Escrow Agent; Authorized Investment...

Section 328.223 - Cancellation of Prepaid Contract by Contract Buyer; Notice; Disbursement of Principal and Income; Cancellation of Contract by Contract Seller or Provider; Failure to Use Escrow Account to Make Funeral Arrangements; Assignment or Tra...

Section 328.224 - Liability for Principal and Income; Investment of Funds; Changing Escrow Agent or Depository.

Section 328.225 - Prices or Quotations of Prices; Requirements; Exception; Manipulation of Prices Prohibited; Provision for Revocation of Contract; Refund; Disclosure of Right to Cancel Contract and Amount of Refund; Disclosure of Commissions; Servic...

Section 328.226 - Prepaid Funeral Contract Not in Writing as Voidable; Agreement as to Rate of Interest; Interest Added or Deducted in Advance; Computation of Interest; Financing of Contract.

Section 328.227 - Rules Generally.

Section 328.228 - Prohibited Conduct; Rules; Administrative Action.

Section 328.229 - Irrevocable Prepaid Contract Approved by Family Independence Agency or Department of Community Health; Rules.

Section 328.230 - Complaint; Investigation; Examination of Books, Records, Contracts, and Other Documents; Duties of Department on Determination of Reasonable Cause to Believe in Occurrence of Violation; Violation; Hearing; Duties of Department on De...

Section 328.231 - Violations; Penalties.

Section 328.232 - Conversion of Funds as Felony; Violation as Misdemeanor; Penalties.

Section 328.233 - Noncompliance With Investment and Depositing Requirements; Petition for Appointment of Receiver; Notice; Hearing; Liquidation.

Section 328.234 - Action to Force Compliance; Damages; Orders.

Section 328.235 - Effective Date.