Consumer Protection Flashcards

A Florida contractor who receives a consumer deposit but fails to begin work may face charges under which concept?

Answer: Misappropriation of funds

Taking a consumer's deposit and failing to perform the contracted work constitutes misappropriation of funds, which is a serious DBPR and potentially criminal violation.

Florida law requires licensed home inspectors to carry which type of insurance to protect consumers?

Answer: Errors and omissions (E&O) insurance

Florida requires licensed home inspectors to carry errors and omissions insurance, which protects consumers if the inspector misses significant defects.

Which statement correctly describes the DBPR's role in consumer education?

Answer: DBPR publishes licensee information and consumer guides to help the public make informed hiring decisions

DBPR educates consumers by making licensee information publicly available and publishing guides on how to hire licensed professionals safely.

What recourse does a Florida consumer have if a DBPR-licensed real estate agent commits fraud?

Answer: File a complaint with DBPR and potentially the Real Estate Recovery Fund

Consumers harmed by a licensed real estate agent's fraud can file a DBPR complaint and may be eligible for compensation from the Real Estate Recovery Fund.

Which of the following best describes 'unlicensed activity' as defined by DBPR?

Answer: Performing regulated professional services without a valid state license

Unlicensed activity refers to performing any work that Florida law requires a state license for without holding a valid, current license.

Florida's Deceptive and Unfair Trade Practices Act (FDUTPA) works alongside DBPR regulations to protect consumers in what way?

Answer: By prohibiting deceptive practices and providing consumers a right to sue for damages

FDUTPA prohibits deceptive and unfair business practices and gives consumers the right to seek damages in court, complementing DBPR's administrative enforcement.