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

Which of the following is not a violation listed in the DTPA?

1. False advertising

2. Runaway sales tactics

3. Failure to disclose material facts

4. Coercive negotiation

The correct answer is: Runaway sales tactics

The Texas Deceptive Trade Practices Act (DTPA) is designed to protect consumers against false, misleading, and deceptive acts or practices in the marketplace. One of the fundamental purposes of the DTPA is to ensure that consumers have access to accurate information and are not subject to manipulative sales practices. False advertising is explicitly recognized as a deceptive trade practice, as it involves promoting products or services based on inaccurate representations, which could mislead consumers. Failure to disclose material facts is also a clear violation because it prevents consumers from making informed decisions based on complete and truthful information. Coercive negotiation techniques, where one party pressures or manipulates another into making a decision, are likewise contrary to the principles upheld by the DTPA. In contrast, the term "runaway sales tactics" is not a clearly defined violation within the DTPA. While aggressive or manipulative sales tactics can be problematic, unless they specifically involve deception or misleading conduct, they do not inherently constitute a violation of the DTPA. This distinction is important, as the act focuses on clear instances of deceit, misrepresentation, or failure to provide necessary information to consumers rather than the overall aggressiveness of sales tactics. Understanding these specific terms allows real estate professionals to navigate