Summary: Consumer Law

Read the summary and the most important questions on Consumer Law

• 1 Consumer Law Lecture

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• Texas Deceptive Trade Practices Act (DTPA): Key Topics

  1. Applicability: Property Party Plaintiff ("Consumer")

• DTPA "Consumer" - (2) (a) Seek

  DTPA does not require the transfer of consideration. An entity/person  is a consumer if it seeks to purchase goods. Any purchaser, or anyone with a good faith intent to purchase, is a consumer. No requirement that you pay or consummate the transaction

• DTPA "Consumer" - (2) (b) Acquire

  Any actual purchaser "acquires," as does any intended beneficiary (good purchased for his benefit). An incidental beneficiary does not "acquire."

• DTPA: "Consumer" - (2) Seeks/Acquires, Examples

  1. An employee is a consumer with respect to goods purchased by an employer 
  2. A purchaser of property may be a consumer with respect to an inspection paid for by the seller 
  3. A friend who borrows goods is not a consumer with respect to the goods
  4. A fiancé of a consumer is not a consumer as to goods purchased by the other finance 

• DTPA: "Consumer" - (3) Purchase or Lease

  Truly free services are not subject to the DTPA. But "purchase" is broadly defined, and the consumer does not have to be the person who actually paid. Test: Did the person claiming to be a consumer acquire goods/services by a purchase. 
  
  

  • A child is a consumer with respect to goods paid for by the parent 
  • A purchaser is a consumer with respect to accounting services paid for by the seller. 

• DTPA: "Consumer" - (4) Goods or Services

  Usually no issue here. But note: (1) "Goods" includes real estate, but not money or intangibles. (2) "Services" includes insurance, but not a pure loan.

• DTPA: "Consumer" - (4) (a) "Goods" defined

  "tangible chattels or real property purchased or leased for use." Note: Inventory purchased for resale are goods.

• DTPA: "Consumer" - (4) (b) "Services" defined

  "Work, labor, or services purchased for leased for use, including services furnished in connection with the sale or repair of goods.

• DTPA: "Consumer" - (4) (b) "Services" does not include a pure loan

  Merely lending money is not subject to DTPA ("pure loan"), but--if from the consumer's perspective--the loan is an essential part of the transaction, then DTPA applies.

• DTPA Exemption (1) Business Consumer w/ $25M or more

  A "business consumer" with assets of $25M or more, or one that is owned or controlled by a corporation or entity with $25M or more, is not a consumer under the DTPA. A defendant has the burden to prove the business consumer exception as an affirmative defense.