Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Under the DTPA, what is the potential outcome for violating consumer protections?

1. Imprisonment

2. Monetary damages

3. License suspension

4. Public reprimand

The correct answer is: Monetary damages

The potential outcome for violating consumer protections under the Deceptive Trade Practices Act (DTPA) primarily includes the award of monetary damages to the affected consumers. This legislation is designed to protect consumers against false, misleading, and deceptive acts. If a business is found to have engaged in these unfair practices, the injured party can seek compensation for the financial losses they incurred as a result. Monetary damages can take various forms, including actual damages, which are intended to cover losses directly suffered by the consumer, as well as potentially additional damages for mental anguish or for the grossly negligent actions of the business. In some cases, the court may also award treble damages, which means that the amount awarded can be tripled if the defendant's conduct was particularly egregious or intentional. While other consequences such as imprisonment, license suspension, and public reprimand might apply in different contexts or for different types of violations, they are not the primary outcomes associated with violations of consumer protections specifically under the DTPA. The focus of this act is on providing consumers with remedies through financial compensation for wronged actions rather than punitive measures against the violator.