Ask a Lawyer, David L. Leon, Attorney, Dallas, Texas (214) 696-0021 » deceptive trade practice http://leonlaw.com/askalawyer Frequently asked questions about Texas law from David Leon, Attorney, Dallas, Texas, (214) 696-0021 Sat, 02 Jan 2010 03:37:30 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 I want to sell a used watch. Do I have to disclose that the watch is used to the customer? http://leonlaw.com/askalawyer/2009/05/25/i-want-to-sell-a-used-watch-do-i-have-to-disclose-that-the-watch-is-used-to-the-customer/ http://leonlaw.com/askalawyer/2009/05/25/i-want-to-sell-a-used-watch-do-i-have-to-disclose-that-the-watch-is-used-to-the-customer/#comments Tue, 26 May 2009 01:15:24 +0000 David Leon http://leonlaw.com/askalawyer/?p=544 Yes. Title 2, Chapter 17 Subchapter C of the Texas Business and Commerce Code deals specifically with the selling of secondhand watches in the state. Not only must the watch be clearly labeled “secondhand” (17.21) but accurate records must also be maintained under Sec. 17.20. Failure to comply is a crime under Sec. 17.22.


]]> http://leonlaw.com/askalawyer/2009/05/25/i-want-to-sell-a-used-watch-do-i-have-to-disclose-that-the-watch-is-used-to-the-customer/feed/ 0 I want to start a new business. In order to attract customers, can I call my business a “wholesaler” even though I sell to the public? http://leonlaw.com/askalawyer/2009/05/25/i-want-to-start-a-new-business-in-order-to-attract-customers-can-i-call-my-business-a-wholesaler-even-though-i-sell-to-the-public/ http://leonlaw.com/askalawyer/2009/05/25/i-want-to-start-a-new-business-in-order-to-attract-customers-can-i-call-my-business-a-wholesaler-even-though-i-sell-to-the-public/#comments Tue, 26 May 2009 01:06:24 +0000 David Leon http://leonlaw.com/askalawyer/?p=540 No. If you are not a wholesaler, you cannot advertise your business as a ‘wholesale’ business. Sec. 17.11 of the Texas Business and Commerce Code specifically prohibits this, as this would be a deceptive trade practice. This type of behavior is a misdemeanor. The statute provides:

DECEPTIVE WHOLESALE AND GOING-OUT-OF-BUSINESS ADVERTISING. (a) In Subsection (b) of this section, unless the context requires a different definition, “wholesaler” means a person who sells for the purpose of resale and not directly to a consuming purchaser.

(b) No person may wilfully misrepresent the nature of his business by using in selling or advertising the word manufacturer, wholesaler, retailer, or other word of similar meaning.
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(d) A person who violates a provision of Subsection (b) or (c) of this section is guilty of a misdemeanor and upon conviction is punishable by a fine of not less than $100 nor more than $500.


]]> http://leonlaw.com/askalawyer/2009/05/25/i-want-to-start-a-new-business-in-order-to-attract-customers-can-i-call-my-business-a-wholesaler-even-though-i-sell-to-the-public/feed/ 0 “My insurance company wrongfully denied my claim” http://leonlaw.com/askalawyer/2009/02/15/my-insurance-company-wrongfully-denied-my-claim/ http://leonlaw.com/askalawyer/2009/02/15/my-insurance-company-wrongfully-denied-my-claim/#comments Mon, 16 Feb 2009 02:04:21 +0000 David Leon http://leonlaw.com/askalawyer/?p=218 An insurance policy is a contract between you and your insurance company. If you make a claim under your policy, Texas law requires that your insurance company acts “reasonably” and in “good faith” when determining whether or not to pay benefits under a policy. If an insurance company fails to act reasonably, it has violated Texas law and you may be entitled to damages.

An insurance company owes a fiduciary duty to its insureds. This means that the insurance company may not put its own interest above that of an Insured. Texas law requires that insurance companies act fairly when dealing with their insured.

Not all denials are done in bad faith, however. If an insurance company has a good reason to deny a claim, then it has acted in good faith. Some examples are: the insured failed to cooperate with insurance company, a policy lapsed, a loss is not covered by the policy or there is fraud. In cases such as these, an insurance company can deny a claim.


]]> http://leonlaw.com/askalawyer/2009/02/15/my-insurance-company-wrongfully-denied-my-claim/feed/ 0 I sold my house to a company for a low price, and they agreed to lease it back to me. Can I get my house back? http://leonlaw.com/askalawyer/2009/02/15/i-sold-my-house-to-a-company-for-a-low-price-and-they-agreed-to-lease-it-back-to-me-can-i-get-my-house-back/ http://leonlaw.com/askalawyer/2009/02/15/i-sold-my-house-to-a-company-for-a-low-price-and-they-agreed-to-lease-it-back-to-me-can-i-get-my-house-back/#comments Sun, 15 Feb 2009 21:15:27 +0000 David Leon http://leonlaw.com/askalawyer/?p=158 Possibly. Texas Property Code provides that the taking of a deed under these circumstances may be considered a deceptive trade practice. Accordingly, the deed may be void and no lien would attach to the homestead property as a result of the purported sale.


]]> http://leonlaw.com/askalawyer/2009/02/15/i-sold-my-house-to-a-company-for-a-low-price-and-they-agreed-to-lease-it-back-to-me-can-i-get-my-house-back/feed/ 0 A company offered to buy my house at a discount and then rent it back to me. http://leonlaw.com/askalawyer/2009/02/15/a-company-offered-to-buy-my-house-at-a-discount-and-then-rent-it-back-to-me/ http://leonlaw.com/askalawyer/2009/02/15/a-company-offered-to-buy-my-house-at-a-discount-and-then-rent-it-back-to-me/#comments Sun, 15 Feb 2009 21:11:17 +0000 David Leon http://leonlaw.com/askalawyer/?p=155 First, if the house is mortgaged, then the transfer of the interest in the property may violate the mortgage’s “due on sale” clause. This means that the mortgage company has the option to call the entire amount of the loan due and payable. Further, such a transaction, may be considered to be a loan, if the house was sold at less than fair market value. This means that all payments made from the seller to the buyer in excess of the sales price will considered to be interest subject to the Texas Finance Code. These cases tend to be fact specific, Contact Us if you wish to discuss.


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