Tennessee Real Estate Practice Exam

Who is protected by the Consumer Protection Act?

1. Real estate agents only

2. Consumers engaged in trade or commerce

3. Only businesses in real estate

4. Government agencies

The correct answer is: Consumers engaged in trade or commerce

The Consumer Protection Act is designed to safeguard the rights of individuals engaging in various types of trade or commerce. This includes protecting consumers from unfair, deceptive, or fraudulent practices related to the purchase of goods and services. The focus is on the interactions between consumers and businesses, ensuring that consumers have a means of redress and are not subjected to exploitative practices. In this context, consumers are defined broadly to encompass individuals who are engaging in economic transactions, making the correct choice the one that emphasizes consumers engaged in trade or commerce. This reflects the Act's purpose of extending protection to a wide array of consumers rather than being limited to specific groups like real estate agents or businesses in real estate alone. Consequently, government agencies are not the primary focus of this particular legislation, as their role is not to benefit from consumer protections but rather to enforce regulations and ensure compliance within the marketplace.