A property management company in Dallas charges tenants excessive fees for normal wear and tear repairs upon move-out, keeping the entire security deposit without justification. A tenant wants to pursue a claim. Under the Texas DTPA, what type of violation does this conduct represent?
Correct Answer
B) An unconscionable action because the company took advantage of the tenant's lack of knowledge to a grossly unfair degree
Under Texas Business & Commerce Code §17.50(a)(3), an unconscionable action or course of action is independently actionable under the DTPA. Charging excessive fees for normal wear and tear while retaining the entire security deposit without justification constitutes taking advantage of the tenant's lack of knowledge, ability, or capacity to a grossly unfair degree, which meets the definition of unconscionable conduct under §17.45(5).
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Previous Question
A seller in El Paso receives a 60-day DTPA demand letter from a buyer alleging a failure to disclose a known roof leak. The seller wants to resolve the matter without going to court. Under the DTPA, what may the seller do during the 60-day notice period?
Next Question
A Texas real estate license holder provides a buyer with a comparative market analysis (CMA) that inflates comparable sale prices to persuade the buyer to offer above market value on a listing. The buyer later learns the comps were inaccurate and files a DTPA claim. The license holder asserts a defense under the DTPA. Which defense is MOST likely to succeed?