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TICO EXAM 2025 (ACTUAL EXAM) | ALL QUESTIONS
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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 ---------CORRECT 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 ---------CORRECT 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 ---------CORRECT 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 fligh --- ------CORRECT 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 --------- CORRECT 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
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 ---------CORRECT ANSWER-----------------d. two consecutive annual financial statements 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 ---------CORRECT 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 ---------CORRECT 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 ---------CORRECT 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 ---------CORRECT 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 ---------CORRECT 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 ---------CORRECT ANSWER-----------------c. the TICO Board of Directors Before counselling or advising a client, a travel agent must
Regulation states that consumers must know the exact cost of all the travel services provided A consumer selects a package tour from a travel wholesaler's brochure. The hotel included in the package is some distance from town, which appeals to the consumer who wants a quiet location for her holiday. When she arrives at the hotel, she is upset by the non-stop noise outside her room as the hotel starts construction of a new swimming pool. Who is to blame for this consumer's dissatisfaction? a. the hotel, which should have cancelled all bookings during construction b. the travel wholesaler, which should have disclosed in its brochure information about construction or renovation of the property c. the woman, who should have more thoroughly researched the hotel before booking d. the construction company, which should have offered all the guests a set of ear plugs ---------CORRECT ANSWER-----------------b. the travel wholesaler, which should have disclosed in its brochure information about construction or renovation of the property ABC, a wholesaler, has been selling XYZ Resort since the resort opened in
- ABC still puts a photograph of the resort from 1965 in the brochure to show off the location's beauty. In fact, the resort has NOT been upgraded or renovated since 1965 and has become run-down and outdated. Has ABC done anything wrong in its brochure? a. no, as long as the company states in the brochure that the photograph was taken in 1965 b. yes, because the photograph does not accurately depict the current condition of the resort c. no, because the Regulation requires that a photograph be used in advertising, but leaves content to the discretion of the registrant d. yes, because photographs should not be used in representations --------- CORRECT ANSWER-----------------b. yes, because the photograph does not accurately depict the current condition of the resort
A couple gives their travel agent a deposit for a package tour. They obtain a receipt from her that says, "Balance of $500.00 due on September 27, 2011." The agent has also added the comment, "As discussed, some charges are non-refundable." TICO would view this receipt as a. adequate because the receipt includes the amount due, the date on which it is due, and the fact that some charges are non-refundable b. adequate because the travel agent has reminded the clients that the non-refundable charges were discussed during the sale of the package tour c. inadequate because, by law, the travel agent should have said, "As discussed on August 27, 2011, some charges are not refundable." d. inadequate because, by law, the travel agent must identify charges that are non-refundable ---------CORRECT ANSWER-----------------d. inadequate because, by law, the travel agent must identify charges that are non- refundable Betsy, the travel agent, concludes the sale with the clients and tells them to go to the Canadian Foreign Affairs website to find out what documents they need. She thinks that Canadians may need a visa for the chosen destination, but she does not have the website on hand. Betsy's advice is a. sufficient because a travel agent need only advise clients where to find information on travel documentation b. insufficient because a travel agent must advise clients about the specific travel documents needed c. sufficient because the clients chose the destination, so it is up to them to research the details d. insufficient because the travel agent must provide the clients with a website address if she does not have specific information about travel documentation on hand ---------CORRECT ANSWER-----------------b. insufficient because a travel agent must advise clients about the specific travel documents needed A client buys a vacation package from ABC Tours on May 1. The departure date is June 15. ABC Tours pays the travel wholesaler on May 8. On which
a. contributions from registrants b. contributions from consumers c. recoveries of money paid from the Compensation Fund d. income earned on the money in the Compensation Fund --------- CORRECT ANSWER-----------------b. contributions from consumers Which of the following could a client claim from the Travel Industry Compensation Fund? a. counselling fees paid to a travel agent b. taxes paid on the travel services c. insurance premiums d. travel services that were to be received as a prize ---------CORRECT ANSWER-----------------b. taxes paid on the travel services A consumer makes a claim against the Travel Industry Compensation Fund and the TICO Board accepts the claim. What is the maximum amount payable? a. $5,000 per person b. $5,000 per claim c. depends on the cost, value, or quality of the travel services purchased d. a calculation of $5 million evenly divided by the number of claims --------- CORRECT ANSWER-----------------a. $5,000 per person TICO is funded by a. the Ontario government b. consumers c. Ontario registrants d. the Canadian travel industry ---------CORRECT 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 ---------CORRECT 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 ---------CORRECT 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) ---------CORRECT 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 ---------CORRECT 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
c. Harmonized Sales Tax (HST) d. All taxes except PST, GST and HST ---------CORRECT 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 ---------CORRECT ANSWER------ -----------b. 5% before the customer has paid in full 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 ---------CORRECT 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 ---------CORRECT 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. ---------CORRECT 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 --------
- CORRECT 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. ---------CORRECT ANSWER-----------------d. conduct a surprise raid on the person's home between 10:00 p.m. and 2:00 a.m.
bankruptcy and the Blacks' trip was ruined, Joe Smith made a claim on the Travel Industry Compensation Fund for the $75.00 service fee he charged as a destination specialist. What will TICO do? a. accept the claim because Joe dealt with the suppliers in good faith and the service fee was part of the travel service package b. refuse the claim because the Compensation Fund does not cover service fees c. accept the claim because the Compensation Fund covers service fees d. refuse the claim because it was illegal for Joe to charge a service fee in the first place ---------CORRECT ANSWER-----------------b. refuse the claim because the Compensation Fund does not cover service fees Sally Smith belongs to a travel program. She saves up her points for two years until she has enough for a vacation package at a sun destination. The travel wholesaler noted in the brochure that the trip was valued at $2,500.00. After Sally transfers the points to the travel wholesaler, the wholesaler declares bankruptcy. Sally files a claim on the Travel Industry Compensation Fund for $2,500.00. Would her claim be eligible for reimbursement? a. yes, because it is based on the stated value of the trip b. no, because Sally did not actually pay money for the trip c. yes, because air points are commonly used and have a monetary value d. no, because travel wholesalers are not covered by the Compensation Fund ---------CORRECT ANSWER-----------------b. no, because Sally did not actually pay money for the trip 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 services or sightseeing services in Ontario is exempt from having to register with TICO ---------CORRECT ANSWER------ -----------d. anyone selling guide services or sightseeing services in Ontario is exempt from having to register with TICO 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. b. non-refundable security deposit of $10,000. c. promissory note, authorized by a lawyer, in the amount of $10,000. d. refundable security deposit of $25,000.00 ---------CORRECT ANSWER--- --------------a. refundable security deposit of $10,000. 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, b. imprisonment for a term of not more than two years less a day c. a fine of not more than $250, d. both a fine of not more than $50,000 and imprisonment for a term of not more than two years less a day ---------CORRECT ANSWER-----------------d. both a fine of not more than $50,000 and imprisonment for a term of not more than two years less a day The time limit for prosecuting offences under the Travel Industry Act, 2002 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 the following: a. six months b. one year
d. transfer a registrant's commission to the general account after the travel wholesaler has been paid ---------CORRECT ANSWER-----------------a. borrow funds to keep the travel agency profitable if a customer is late in paying for a package tour 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 ---------CORRECT ANSWER-----------------c. the agency's sales in Ontario during the previous fiscal year 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 ---------CORRECT ANSWER-----------------b. brochures that identify destinations and accommodations 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' 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 ---------CORRECT ANSWER-----------------d. yes, if he provides security in lieu of trust accounting
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 ---------CORRECT ANSWER-----------------a. attempt to mediate or resolve the complaint 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 a.m. and 3:00 p.m. ---------CORRECT ANSWER----- ------------b. an unreasonable request because the staff are required to assist the inspector 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 between 6:00 a.m. and 9:00 p.m. b. no, the investigator cannot enter the premises without the warrant c. yes, exigent circumstances permit the investigator to enter and search the premises
