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

What does the Texas Deceptive Trade Practices Act (DTPA) protect consumers against?

1. Unfair property assessments

2. False, misleading, and deceptive business practices

3. Fraudulent lending practices

4. Inaccurate property listings

The correct answer is: False, misleading, and deceptive business practices

The Texas Deceptive Trade Practices Act (DTPA) is designed to protect consumers from false, misleading, and deceptive business practices. It provides a framework for individuals to seek legal recourse when they have been wronged by dishonest or unethical business conduct. Specifically, the DTPA addresses a broad range of deceptive practices that may occur in various industries, including real estate. Under the DTPA, consumers have the right to sue for damages if they can demonstrate that a business has engaged in activities such as misrepresenting goods or services, making false statements, or failing to disclose important information that would influence a consumer's decision. This emphasis on consumer protection helps ensure fair business practices and promotes transparency within the marketplace. While the other options may also involve forms of consumer protection, they do not encompass the full scope of coverage provided by the DTPA. For example, unfair property assessments, fraudulent lending practices, and inaccurate property listings can certainly be concerning to consumers, but they may be addressed under different laws or regulations rather than specifically under the DTPA's provision on deceptive practices.