TICO CORE EXAM Supervisor/ Manager – Review Rated A Passed 2023

TICO CORE EXAM Supervisor/ Manager – Review Rated A Passed 2023 John is a student who has decided to create his own company to provide walking tours in his hometown of Thunder Bay. Some tourists book a tour, but because John has the flu, he does not show up. The tourists complain to TICO that their afternoon was ruined. Why is TICO unable to assist these consumers? a. a tour guide is considered to be an end supplier and is therefore exempt from registering with TICO b. John should have registered with TICO because he is providing a type of travel service c. having the flu is considered to be a force majeure, so the tourists have no grounds for complaint d. anyone selling guide or sightseeing services in Ontario is exempt from having to register with TICO *ANS* d Ontario Regulation 26/05 states that a person who has not registered with TICO in the previous 12 months must provide a a. refundable security deposit of $10,000.00 b. non-refundable security deposit of $10,000.00 c. promissory note, authorized by a lawyer, in the amount of $10,000.00 d. refundable security deposit of $25,000.00 *ANS* a A man has violated the Travel Industry Act, 2002 by providing services as a travel agent without actually being registered. As a result of his conviction, the penalty could be a. a fine of not more than $50,000 b. imprisonment for a term of not more than two years less a day c. a fine of not more than $250,000 d. both a fine of not more than $50,000 and imprisonment for a term of not more than two years less a day *ANS* d The time limit for prosecuting offences under the Act is no more than ___________ after the Director first becomes aware of the facts on which the proceeding is based. Fill in the blank with the correct answer from one of the following: a. six months b. one year c. two years d. five years *ANS* c The landlord of the building where ABC Travel Agency is located, is planning a major renovation. ABC Travel is forced to find another location until the renovation is completed. What is ABC Travel's duty as far as TICO is concerned? a. the agency must inform TICO, in writing, at least five days before the move b. the agency need not inform TICO, because the move is only a temporary one c. the agency need not inform TICO as long as the agency changes its phone message and puts a note on the door of its main premises to alert customers of the temporary relocation d. the agency must inform TICO within a reasonable time of the move, even though it is only a temporary move. *ANS* a As defined in Ontario Regulation 26/05, a financial statement does NOT need to include a. a statement of sales in Ontario made during a specific period b. a balance sheet or income statement c. the individual invoices sent to customers during a specific period d. a reconciliation of the trust account with customer deposits *ANS* c A trust account may NOT be used to a. borrow funds to keep the travel agency profitable if a customer is late in paying for a package tour b. pay a wholesaler for the package tour for which the travel agency has received the money c. issue refunds to customers d. transfer a registrant's commission to the general account after the travel wholesaler has been paid *ANS* a The amount of working capital required by a travel agency is based on which of the following? a. The length of time the agency has been in business b. the number of employees the agency has c. the agency's sales in Ontario during the previous fiscal year d. the number of bookings the agency made during the previous fiscal year *ANS* c All agencies are required to maintain business records. Which of the following does NOT fall under the category of business records? a. accounting and banking files b. brochures that identify destinations and accommodations c. payment records d. files containing client options regarding refund or alternative travel services *ANS* b ABC Travel Agency has been in business for two years. The owner informs TICO that he plans to stop maintaining a trust account. Under Ontario Regulation 26/05,can he do this? a. no, he must operate a trust account b. yes, as long as the general account contains the equivalent of sales from the past 12 months he can close the business's trust account c. no, he must be in business for three fiscal years before he can choose not to operate a trust account d. Yes, if he provides security in lieu of trust accounting. *ANS* d When a consumer makes a complaint about a registrant to TICO, what will the Registrar do? a. attempt to mediate or resolve the complaint b. call the police to investigate c. close the agency until the matter is resolved d. seize the registrant's documents and records *ANS* a The manager of ABC Travel is on holiday. At 10:00 a.m., a TICO inspector arrives to inspect the financial records. While the agency's staff know where the records are kept, they refuse to open the files, telling the inspector that the manager will be back in two weeks and the inspector will have to wait. According to Ontario Regulation 26/05, this is a. a reasonable request and the inspector will have to return in two weeks b. an unreasonable request because the staff are required to assist the inspector c. a reasonable request because the inspector is supposed to provide 30 days' notice of his intent to inspect the agency records d. an unreasonable request because an inspector can only enter the agency between 11:00 3:00 p.m. *ANS* b A TICO investigator arrives at ABC Travel Agency and sees someone inside taking files from the cabinets and burning them in a pail. The investigator enters the agency and searches the premises, without a search warrant. Is the investigator allowed to do this? a. yes, as long as it is within the hours of 6:00 am and 9:00 pm b. no, the investigator cannot enter the premises without the warrant c. yes, exigent circumstances allow for the investigator to enter and search the premises d. no, the investigator can enter only if accompanied by the police *ANS* c If a person has defaulted on paying a fine for an offence, TICO can do which of the following? a. impose an additional fine of $25,000 and a sentence of up to two years in jail b. place a lien on real estate or personal property of the person in default c. borrow the money from the Travel Industry Compensation Fund until the person pays d. ban the person from ever working in a travel agency again. *ANS* b According to the Travel Industry Act, 2002, which of the following must be compliant with the Education Standards in a travel agency? a. all staff no matter what their role is in the agency b. all staff providing information about travel services to the public c. only the owner of the agency d. only the owner and the supervisor/manager of the agency *ANS* b What is the maximum penalty for a corporation that commits an offence under the Travel Industry Act, 2002? a. $250,000 b. $50,000 c. two years less a day in prison d. $50,000 and two years less a day in prison *ANS* a Which of the following must register under the Travel Industry Act, 2002? a. an end supplier b. a travel agency in North Bay c. a travel agency in Saskatoon d. an educational institution in Ottawa *ANS* b "Sales in Ontario" refers to a. the amount paid to or through a travel agent or travel wholesaler for services sold in Ontario during a given period of time b. the amount paid to travel agents only, for services sold to Ontario consumers during a given period of time c. the amount paid to travel wholesalers only, for all travel bookings originating in Ontario during a given period of time d. an annual list of travellers who booked through an Ontario-registered travel agent or wholesaler *ANS* a When registrants provide a security deposit, how many annual financial statements must they file before being eligible to have the security deposit returned? a. none b. one annual financial statement c. two annual financial statements d. two consecutive annual financial statements *ANS* d ABC agency has been in business for six months. The advertising bill must be paid. Can ABC take money from the company trust account to pay the bill? a. yes, but only after money is transferred from the general account to the trust account b. yes, because the trust account can be used for operating expenses such as advertising c. no, because only the general account can be used for operating expenses d. no, because ABC does not have to maintain a trust account after being in business for six months *ANS* c A consumer is dissatisfied with a vacation tour package purchased from a travel agent at ABC Travel in Ontario. Who should the consumer approach first to make a complaint? a. TICO b. Ministry of Consumer Services c. ABC Travel d. a lawyer *ANS* c Which of the following statements is NOT TRUE, when it comes to describing TICO's role in attempting to resolve disputes between consumers and registrants? a. TICO has the authority to impose a settlement in a dispute. b. TICO will hear complaints between a consumer and an unregistered travel agent. c. TICO staff will review the complaint against the requirements of the Act and Regulation to determine if the registrant met their obligations. d. A complainant must fill out a complaint form and include information and supporting documents. *ANS* a Which one of the following complaints would NOT be heard by the Complaints Committee of TICO? a. a registrant feels that he is being unfairly targeted for TICO inspections b. a registrant wishes to dispute a Notice of Proposal to Revoke Registration c. a consumer is unhappy with the action that TICO took against a registrant d. a registrant is dissatisfied with the services provided by TICO staf *ANS* b If a person refuses to comply with the Travel Industry Act, 2002 or Ontario Regulation 26/05, TICO can take a number of actions to correct the situation. Which of the following would TICO NOT be able to do? a. apply to the Superior Court of Justice for an order directing the person to comply b. begin an investigation c. obtain and execute a search warrant d. conduct a surprise raid on the person's home between 10:00 p.m. and 2:00 a.m. *ANS* d Individuals convicted of an offence may face a. a fine of up to $50,000 b. imprisonment for a term of up to two years less a day c. both a fine of up to $50,000 and imprisonment for a term of up to two years less a day d. both a fine of up to $250,000 and imprisonment for a term of up to two years less a day *ANS* c Restitution refers to a. a duty b. a tax c. compensation d. court fines *ANS* c