2009 Texas Code
BUSINESS AND COMMERCE CODE
TITLE 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD
CHAPTER 27. FRAUD  

BUSINESS AND COMMERCE CODE

TITLE 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD

CHAPTER 27. FRAUD

Sec. 27.01. FRAUD IN REAL ESTATE AND STOCK TRANSACTIONS. (a)

Fraud in a transaction involving real estate or stock in a

corporation or joint stock company consists of a

(1) false representation of a past or existing material fact,

when the false representation is

(A) made to a person for the purpose of inducing that person to

enter into a contract; and

(B) relied on by that person in entering into that contract; or

(2) false promise to do an act, when the false promise is

(A) material;

(B) made with the intention of not fulfilling it;

(C) made to a person for the purpose of inducing that person to

enter into a contract; and

(D) relied on by that person in entering into that contract.

(b) A person who makes a false representation or false promise

commits the fraud described in Subsection (a) of this section and

is liable to the person defrauded for actual damages.

(c) A person who makes a false representation or false promise

with actual awareness of the falsity thereof commits the fraud

described in Subsection (a) of this section and is liable to the

person defrauded for exemplary damages. Actual awareness may be

inferred where objective manifestations indicate that a person

acted with actual awareness.

(d) A person who (1) has actual awareness of the falsity of a

representation or promise made by another person and (2) fails to

disclose the falsity of the representation or promise to the

person defrauded, and (3) benefits from the false representation

or promise commits the fraud described in Subsection (a) of this

section and is liable to the person defrauded for exemplary

damages. Actual awareness may be inferred where objective

manifestations indicate that a person acted with actual

awareness.

(e) Any person who violates the provisions of this section shall

be liable to the person defrauded for reasonable and necessary

attorney's fees, expert witness fees, costs for copies of

depositions, and costs of court.

Acts 1967, 60th Leg., vol. 2, p. 2343, ch. 785, Sec. 1. Amended

by Acts 1983, 68th Leg., p. 5208, ch. 949, Sec. 1, 2, eff. Sept.

1, 1983.

Sec. 27.02. CERTAIN INSURANCE CLAIMS FOR EXCESSIVE CHARGES. (a)

A person who sells goods or services commits an offense if:

(1) the person advertises or promises to provide the good or

service and to pay:

(A) all or part of any applicable insurance deductible; or

(B) a rebate in an amount equal to all or part of any applicable

insurance deductible;

(2) the good or service is paid for by the consumer from

proceeds of a property or casualty insurance policy; and

(3) the person knowingly charges an amount for the good or

service that exceeds the usual and customary charge by the person

for the good or service by an amount equal to or greater than all

or part of the applicable insurance deductible paid by the person

to an insurer on behalf of an insured or remitted to an insured

by the person as a rebate.

(b) A person who is insured under a property or casualty

insurance policy commits an offense if the person:

(1) submits a claim under the policy based on charges that are

in violation of Subsection (a) of this section; or

(2) knowingly allows a claim in violation of Subsection (a) of

this section to be submitted, unless the person promptly notifies

the insurer of the excessive charges.

(c) An offense under this section is a Class A misdemeanor.

Added by Acts 1989, 71st Leg., ch. 898, Sec. 1, eff. Sept. 1,

1989.