BUSINESS & COMMERCE CODE

CHAPTER 27. FRAUD


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


	§ 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, § 1, eff. Sept. 1, 1989.