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

Which legislation was enacted in 1973 to protect consumers from false business practices?

1. Texas Fair Housing Act

2. Texas Deceptive Trade Practices Act

3. Texas Real Estate License Act

4. Real Estate Settlement Procedures Act

The correct answer is: Texas Deceptive Trade Practices Act

The Texas Deceptive Trade Practices Act, enacted in 1973, was specifically designed to protect consumers from misleading and deceptive business practices. This legislation enables consumers to seek legal recourse against businesses that engage in false advertising, fraud, and other unethical behaviors that could harm their interests. The act provides a framework for addressing various types of deceptive conduct and outlines the rights of consumers in such situations, including the ability to file lawsuits and seek damages. This legislation stands out because it directly targets deceitful trade practices across various sectors, making it a broad consumer protection law that empowers individuals against dishonest business conduct. By facilitating legal actions against misleading representations, it plays a crucial role in fostering honesty and transparency in the marketplace, thereby enhancing consumer confidence. In contrast, the other options focus on different aspects of consumer protection or real estate regulation. The Texas Fair Housing Act addresses discrimination in housing, the Texas Real Estate License Act governs the licensing of real estate professionals, and the Real Estate Settlement Procedures Act pertains primarily to the settlement and closing processes in real estate transactions. Each of these laws has its specific purpose, but none are centered solely on countering deceptive business practices like the Texas Deceptive Trade Practices Act.