FREE TICO Destination Knowledge Questions and Answers

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?

no, he must be in business for three fiscal years before he can choose not to operate a trust account

yes, if he provides security in lieu of trust accounting

no, he must operate a trust account

yes, as long as the general account contains the equivalent of sales from the past 12 months he can close the business' trust account

Correct! Wrong!

The Travel Industry Compensation Fund applies to

Manitoba consumers who purchase travel from an Ontario travel agency

Ontario consumers who purchase travel from any travel agency in Canada

Ontario consumers who travel exclusively in Ontario

Manitoba consumers who purchase from a local agency that has a branch agency in Ontario

Correct! Wrong!

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 date must the travel wholesaler produce the tickets, vouchers, itinerary, and other related documents for the travel agent?

May 22 (14 days after payment is received)

June 8 (7 days before departure)

May 24 (21 days before departure)

June 1 (14 days before departure)

Correct! Wrong!

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?

TICO will hear complaints between a consumer and an unregistered travel agent.

TICO staff will review the complaint against the requirements of the Act and Regulation to determine if the registrant met their obligations.

A complainant must fill out a complaint form and include information and supporting documents.

TICO has the authority to impose a settlement in a dispute.

Correct! Wrong!

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?

yes, because the trust account can be used for operating expenses such as advertising

no, because only the general account can be used for operating expenses

no, because ABC does not have to maintain a trust account after being in business for six months

yes, but only after money is transferred from the general account to the trust account

Correct! Wrong!

Which one of the following circumstances would NOT result in the travel agent having to offer the client a full refund or comparable alternative travel services?

where the scheduled departure of any transportation is delayed or advanced by 12 hours or less

where the contract does not permit a price increase and the total price of the travel services is increased, whatever the amount or reason

where a contract permits a price increase, the cumulative increase is more than 7% of the total price (excluding increases caused by an increase in the PST, GST or HST)

where a different cruise ship has been substituted

Correct! Wrong!

The amount of working capital required by a travel agency is based on which of the following?

the agency's sales in Ontario during the previous fiscal year

the number of bookings the agency made during the previous fiscal year

the length of time the agency has been in business

the number of employees the agency has

Correct! Wrong!

According to the Travel Industry Act, 2002, a travel agent does NOT have to inform a client before booking

the total price of the travel services, including all taxes and service charges

that some days can be cloudy, even in a sun destination

that conditions at the destination may be different from those in Canada

that a counselling fee is applied by the agent

Correct! Wrong!

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?

no, the investigator cannot enter the premises without the warrant

yes, as long as it is between 6:00 a.m. and 9:00 p.m.

no, the investigator can enter only if accompanied by the police

yes, exigent circumstances permit the investigator to enter and search the premises

Correct! Wrong!

Joe and Sally are originally from Sudbury, but now live in Windsor. They depart from Toronto for a round-trip vacation package to Europe. When the supplier declares bankruptcy, Joe and Sally are stranded overseas. Under the trip completion provision in Ontario Regulation 26/05, where can Joe and Sally be returned, assuming that costs for each destination are approximately the same?

Sudbury

Windsor

Toronto

Toronto or Windsor

Correct! Wrong!

If a person has defaulted on paying a fine for an offence, TICO can do which of the following?

ban the person from ever working in a travel agency again

impose an additional fine of $25,000 and a sentence of up to two years in jail

place a lien on real estate or personal property of the person in default

borrow the money from the Travel Industry Compensation Fund until the person pays

Correct! Wrong!

FREE TICO Travel Industry Laws Questions and Answers
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FREE TICO Destination Knowledge Questions and Answers

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?

The Travel Industry Compensation Fund applies to

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 date must the travel wholesaler produce the tickets, vouchers, itinerary, and other related documents for the travel agent?

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?

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?

Which one of the following circumstances would NOT result in the travel agent having to offer the client a full refund or comparable alternative travel services?

The amount of working capital required by a travel agency is based on which of the following?

According to the Travel Industry Act, 2002, a travel agent does NOT have to inform a client before booking

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?

If a person has defaulted on paying a fine for an offence, TICO can do which of the following?

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