TICO Practice Exam 2023 with Complete Solutions

TICO is funded by a. the Ontario government b. consumers c. Ontario registrants d. the Canadian travel industry - ANSWER-c. Ontario registrants TICO works with consumers to ensure that a. they are aware of their rights under the Travel Industry Act, 2002 b. they take their vacations in Ontario c. the travel industry is promoted to consumers d. consumers receive the lowest price from travel agents - ANSWER-a. they are aware of their rights under the Travel Industry Act, 2002 TICO enhances industry professionalism in many ways, including a. offering courses to travel counsellors to enhance their skill b. maintaining an informative and up-to-date website c. encouraging consumers to consider a career in travel d. working with end suppliers - ANSWER-b. maintaining an informative and up-to-date website The registration and inspection of travel businesses in Ontario is conducted by a. the federal government b. International Air Transport Association (IATA) c. the Ministry of Consumer Services d. the Travel Industry Council of Ontario (TICO) - ANSWER-d. the Travel Industry Council of Ontario (TICO) The Travel Industry Act, 2002 defines travel agent as a. a person who owns and operates a travel service b. a person who sells travel services provided by another person c. a person who sells travel services to other travel agents and wholesalers d. a person who conducts sightseeing tours - ANSWER-b. a person who sells travel services provided by another person The Travel Industry Compensation Fund applies to a. Ontario consumers who purchase travel from any travel agency in Canada b. Manitoba consumers who purchase travel from an Ontario travel agency c. Manitoba consumers who purchase from a local agency that has a branch agency in Ontario d. Ontario consumers who travel exclusively in Ontario - ANSWER-b. Manitoba consumers who purchase travel from an Ontario travel agency In cases where the Registrar issues a false advertising order because a registrant's advertising violates the Act, when does the order take effect? a. on the date the advertisement would next have appeared b. immediately c. one week after the order is issued d. one month after the order is issued - ANSWER-b. immediately ABC agency is promoting a resort on its website. It has included an artist's drawing of the resort as part of the representation. Would TICO approve of this? a. no, because only photographs may be used in a representation b. yes, as long as the representation states that the drawing is fairly accurate c. no, unless the date on which the drawing was made is included d. yes, as long as the drawing is accurate and the representation states that the drawing is not a photograph - ANSWER-d. yes, as long as the drawing is accurate and the representation states that the drawing is not a photograph When a travel agent publishes a price in a tour brochure or similar representation, Ontario Regulation 26/05 demands that he or she show a. Provincial Sales Tax (PST) b. Goods and Services Tax (GST) c. Harmonized Sales Tax (HST) d. All taxes except PST, GST and HST - ANSWER-d. All taxes except PST, GST and HST The statement included on the customer's invoice says that price increases are permitted. The customer will have to pay more if the price is increased by a. 7% after the customer has paid in full b. 5% before the customer has paid in full c. 10% before the customer has paid in full d. 8% before the customer has paid in full - ANSWER-b. 5% before the customer has paid in full Joe Smith purchases travel services from ABC agency, which includes a scheduled flight. Joe may be entitled to a full immediate refund or comparable alternative travel services if the scheduled flight is delayed by a. 12 hours b. 25 hours because of a severe snow storm c. 25 hours d. 12 hours because of safety considerations - ANSWER-c. 25 hours Whose responsibility is it to check that a client's accommodation is going to be in the same condition as when it was described to the client at the time of purchase? a. client b. Registrar c. registrant d. hotel supplying the accommodation - ANSWER-c. registrant Which item takes precedence over other claims on the Travel Industry Compensation Fund? Payments for a. immediate departure b. trip interruption c. trip completion d. a major event - ANSWER-c. trip completion Joe Smith purchases a package tour from ABC agency that includes a return economy flight. The airline end supplier becomes bankrupt during Joe's trip and he is stranded at the destination. He purchases a business class flight home and then makes a claim on the Compensation Fund for his trip completion expenses. Will his trip completion expense claim be successful? a. yes, because he was forced to make his own arrangements to get home as the Director did not direct payments for trip completion b. no, because trip completion expense claims may only be made when a trip cannot be completed because travel services were not provided as a result of the failure of a registrant c. yes, because the Fund is primarily concerned with "trip completion" and getting stranded Ontarians home d. no, because he purchased a business class flight and he had to obtain services comparable to those originally purchased (i.e. an economy flight) - ANSWER-b. no, because trip completion expense claims may only be made when a trip cannot be completed because travel services were not provided as a result of the failure of a registrant A consumer who wishes to make a standard claim on the Compensation Fund for travel services paid for but not provided must do so a. any time; there is no limitation b. immediately c. within three months of the registrant's or end supplier's failure d. within six months of the registrant's or end supplier's failure - ANSWER-d. within six months of the registrant's or end supplier's failure 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 - ANSWER-b. all staff providing information about travel services to the public 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 - ANSWER-a. $250,000 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 - ANSWER-b. a travel agency in North Bay "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 - ANSWER-a. the amount paid to or through a travel agent or travel wholesaler for services sold in Ontario during a given period of time 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 - ANSWER-d. two consecutive annual financial statements 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 - ANSWER-c. no, because only the general account can be used for operating expenses 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 - ANSWER-c. ABC Travel 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. - ANSWER-a. TICO has the authority to impose a settlement in a dispute. 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 staff - ANSWER-b. a registrant wishes to dispute a Notice of Proposal to Revoke Registration 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. - ANSWER-d. conduct a surprise raid on the person's home between 10:00 p.m. and 2:00 a.m. 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 - ANSWER-c. both a fine of up to $50,000 and imprisonment for a term of up to two years less a day Restitution refers to a. a duty b. a tax c. compensation d. court fines - ANSWER-c. compensation The phrase "to promote a fair and informed marketplace where consumers can be confident in their travel purchases" is the a. mission statement of the Ministry of Consumer Services b. mission statement of TICO c. vision statement of TICO d. purpose of the Travel Industry Act, 2002 - ANSWER-b. mission statement of TICO The administration of the Travel Industry Act, 2002 was delegated to TICO by the a. federal government b. travel industry c. Ministry of Consumer and Corporate Affairs d. Ontario provincial government - ANSWER-d. Ontario provincial government TICO works with which three groups to carry out its mandate? a. consumers, travel retailers, the federal government b. travel retailers, travel wholesalers, consumers c. the travel industry, the provincial government, consumers d. suppliers, travel agents, consumers - ANSWER-c. the travel industry, the provincial government, consumers The best description of Ontario's Travel Industry Act, 2002 is that it a. outlines the rights of consumers b. sets down the rules under which travel retailers and travel wholesalers must operate in Ontario c. goes into detail to explain the content of the related regulations d. provides guidelines to travel retailers and travel wholesalers about what must be included in vacation packages - ANSWER-b. sets down the rules under which travel retailers and travel wholesalers must operate in Ontario TICO lays charges after discovering that a man has been selling travel services without being a registrant or an employee in a registrant's agency or office. When the man sees his name in the newspaper, he threatens to take legal action against TICO for violating his privacy. He will lose the case because a. Ontario Regulation 26/05 provides that TICO's Registrar must make these details available to the public b. the Ministry of Consumer Services lays charges against illegal sellers of travel, not TICO c. no law says a person has to be registered to sell travel services in Ontario d. Ontario Regulation 26/05 specifically states that no one can take legal action against TICO - ANSWER-a. Ontario Regulation 26/05 provides that TICO's Registrar must make these details available to the public Who is the Statutory Director appointed by? a. the Registrar b. the Minister c. the TICO Board of Directors d. the Premier - ANSWER-c. the TICO Board of Directors Before counselling or advising a client, a travel agent must a. inform the client of any counselling fee charged b. show a picture of the travel service being sold c. advise the client of the need for a passport or visa d. ask to make an imprint of the customer's credit card - ANSWER-a. inform the client of any counselling fee charged In the Travel Industry Act, 2002, the term "representation" refers to a. print advertisements only b. print advertisements except for billboards c. presentations of any type, including oral, print, and electronic d. oral presentations only - ANSWER-c. presentations of any type, including oral, print, and electronic According to the Travel Industry Act, 2002, a travel agent does NOT have to inform a client before booking a. that conditions at the destination may be different from those in Canada b. the total price of the travel services, including all taxes and service charges c. that a counselling fee is applied by the agent d. that some days can be cloudy, even in a sun destination - ANSWER-d. that some days can be cloudy, even in a sun destination