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

Under what condition can a licensee no longer be held liable under the DTPA?

1. If they have a disqualified license

2. With intention of inducing a transaction

3. If they commit an unconscionable act

4. Unless they misrepresent a material fact

The correct answer is: If they commit an unconscionable act

A licensee can no longer be held liable under the Deceptive Trade Practices Act (DTPA) if they commit an unconscionable act. An unconscionable act is one that is so extreme or unjust that it shocks the conscience. In the context of the DTPA, if a licensee's actions are considered unconscionable, they might forfeit their protection under the act, which could result in significant liability. The other conditions outlined would not provide a definitive immunity from liability under the DTPA. For example, simply having a disqualified license does not exempt a licensee from responsibility for deceptive practices. Intentionally inducing a transaction usually pertains to liability rather than protection from it. Lastly, misrepresenting a material fact can lead to significant liability under the DTPA, and failing to do so does not exempt a licensee from all potential liability. Therefore, it is the occurrence of unconscionable acts that directly impacts the potential for liability under the DTPA.