Which statement is false regarding the Texas Deceptive Trade Practices Act?

Prepare for the TREC Sales Agent Exam. Study with multiple choice questions and flashcards, complete with hints and detailed explanations. Get ready for your test!

The statement regarding the Texas Deceptive Trade Practices Act that is false is that mental anguish damages are not awarded. Under the Texas Deceptive Trade Practices Act (DTPA), consumers may be entitled to recover mental anguish damages if they can demonstrate that the deceptive act or practice caused them emotional distress. While there are specific rules about the type and extent of damages that can be awarded, mental anguish can indeed be part of the damages in a successful claim under the DTPA, especially if the violation is found to have caused significant emotional impact on the consumer.

The other statements accurately reflect aspects of the DTPA. Recovery is indeed limited to economic damages if a party acted knowingly, meaning that if the seller didn’t intentionally deceive the consumer but still misrepresented something, the recovery is limited. Additionally, the DTPA allows for treble (triple) damages in cases of intentional fraud, which acts as a strong deterrent against deceptive practices. Lastly, if a party knowingly commits a deceptive act, it grants the consumer broader recovery options, including seeking more extensive damages beyond just economic loss.

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