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.