Perry Funeral Home, Inc. - Page 3

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               Petitioner is a funeral home located at all relevant times             
          in New Bedford, Massachusetts.  Petitioner began operations in              
          1963 as a partnership and was incorporated under the laws of the            
          Commonwealth of Massachusetts on September 19, 1967.  Brothers              
          Thomas Perry and William Perry each own a 50-percent interest in            
          petitioner and are funeral directors licensed by the Commonwealth           
          of Massachusetts.                                                           
          Petitioner’s Operations                                                     
               Prior to and during the years in issue, petitioner entered             
          into preneed funeral contracts.  Under these arrangements, the              
          contract purchaser selected, on a prospective basis, the goods              
          and services to be provided by petitioner at the contract                   
          beneficiary’s death.  Petitioner would designate the selected               
          items and applicable charges on a written form.                             
               If the resultant balance was then paid in advance of death,            
          either in a lump sum or in installments, petitioner agreed to               
          honor the contract at death as written, without additional cost             
          to the purchaser or family.  If the resultant balance was to be             
          paid through the proceeds of an insurance policy or was left                
          unfunded, the amount due would be recalculated in accordance with           
          the prices in effect at the time of death.                                  
               The written form used by petitioner for these purposes was             
          not specific to prearranged funerals and contained no express               
          provisions regarding the use or refundability of amounts received           

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Last modified: May 25, 2011