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TICO Test: Travel Industry Act, 2002 - Questions and Answers, Exams of Sociology

A comprehensive set of questions and answers related to the travel industry act, 2002 (tico) in ontario, canada. It covers various aspects of the act, including travel agent responsibilities, client rights, compensation fund regulations, and force majeure situations. Valuable for students and professionals in the travel industry, providing insights into the legal framework governing travel services in ontario.

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2024/2025

Available from 02/16/2025

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TICO TEST LATEST TEST 2025 | ALL
QUESTIONS AND CORRECT ANSWERS |
GRADED A+ | VERIFIED ANSWERS | LATEST
EXAM
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? ---------CORRECT
ANSWER-----------------June 1 (14 days before departure)
Define Travel Agent: ---------CORRECT ANSWER-----------------A person
who sells, to consumers, travel services provided by another person
All newspaper advertisements must include the following information: -------
--CORRECT ANSWER-----------------Business name, address, and TICO
registration number
According to the Travel Industry Act, 2002, a travel agent does NOT have
to inform a client before booking... ---------CORRECT ANSWER----------------
-That some days can be cloudy, even in a sun destination
Sally Rosa purchases a package tour from ABC agency that includes a
return business flight. The airline end supplier becomes bankrupt during
Sally's trip and she is stranded at the destination. She purchases a
business class flight home and then makes a claim on the Compensation
Fund. Will her claim for reimbursement of the flight home be successful? ---
------CORRECT ANSWER-----------------Yes, because the Fund will cover
only the value of the unused portion of the original ticket
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TICO TEST LATEST TEST 2025 | ALL

QUESTIONS AND CORRECT ANSWERS |

GRADED A+ | VERIFIED ANSWERS | LATEST

EXAM

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? ---------CORRECT ANSWER-----------------June 1 (14 days before departure) Define Travel Agent: ---------CORRECT ANSWER-----------------A person who sells, to consumers, travel services provided by another person All newspaper advertisements must include the following information: ------- --CORRECT ANSWER-----------------Business name, address, and TICO registration number According to the Travel Industry Act, 2002, a travel agent does NOT have to inform a client before booking... ---------CORRECT ANSWER----------------

  • That some days can be cloudy, even in a sun destination Sally Rosa purchases a package tour from ABC agency that includes a return business flight. The airline end supplier becomes bankrupt during Sally's trip and she is stranded at the destination. She purchases a business class flight home and then makes a claim on the Compensation Fund. Will her claim for reimbursement of the flight home be successful? --- ------CORRECT ANSWER-----------------Yes, because the Fund will cover only the value of the unused portion of the original ticket

T/F: The Fund will NOT reimburse travel agents for any commissions, any service charge owing on the travel services purchased by the customer, or travel services purchased through an Alberta travel agency --------- CORRECT ANSWER-----------------True The best description of Ontario's Travel Industry Act, 2002, is that it... ------- --CORRECT ANSWER-----------------Sets down the rules under which travel retailers and travel wholesalers must operate in Ontario The phrase: "to promote a fair and informed marketplace where consumers can be confident in their travel purchases" is the: ---------CORRECT ANSWER-----------------Mission/vision statement of TICO Which is NOT a Force Majeure?

  • Floods
  • Hurricanes
  • Riots
  • Mechanical ---------CORRECT ANSWER-----------------Mechanical ABC, a wholesaler, has been selling XYZ Resort since the resort opened in
  1. 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? ---------CORRECT ANSWER----- ------------Yes, because the photograph does not accurately depict the current condition of the resort

What is an Act? ---------CORRECT ANSWER-----------------Describes a particular set of rules Mr. White is planning a business trip to Tel Aviv in the next upcoming weeks. He wants to leave Toronto on Thursday, so he has Friday to recover from his long haul flight. On Saturday he will go to the National Bank to do business and return home Monday. What must the travel agent advise Mr. White? ---------CORRECT ANSWER-----------------Banks in Tel Aviv are closed on Saturday Before counselling or advising a client, a travel agent must.. --------- CORRECT ANSWER-----------------Inform the client of any counselling fee charged A travel wholesaler or travel agent who has acquired the rights to travel services for resale must.. ---------CORRECT ANSWER-----------------Have a written agreement with any supplier whose travel services the wholesaler or agent is reselling 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.. ---------CORRECT ANSWER-----------------Insufficient because a travel agent must advise clients about the specific travel documents needed Joe Smith makes a reservation through ABC Travel including air, car, and hotel. Upon arriving at his destination, Joe comes to know that the car rental agency has closed down due to bankruptcy. Is Joe eligible to make a

claim through the Compensation Fund? ---------CORRECT ANSWER--------- --------No, The Fund does not reimburse consumers for car rental agencies. The client must be advised of what two insurances ---------CORRECT ANSWER-----------------Trip Cancellation and Out of Province Health 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 a contract permits a price increase, the cumulative increase is more than 7% of the total price (excluding increases caused by the GST or PST)
  • 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 different cruise ship has been substituted - --------CORRECT ANSWER-----------------where the scheduled departure of any transportation is delayed or advanced by 12 hours or less Clark booked a tour package to a country where all the banks and restaurants are closed on Saturday, and shorts and T-shirts are not allowed in any of the temples or palaces. What are the Travel Agent's obligations in these matters?
  • None because in this case they specifically asked to travel to this country and therefore it can be assumed they did their research.
  • None, aside from explaining the travel documents needed for travel, Joe is not obligated to tell them anything.
  • The Travel Agent is responsible for telling the clients about standards of service at the destination that may be different from Canada.
  • The Travel Agent is responsible for telling the Clark's about the banks but not about matters that deal with eating in restaurants or how to dress when

Sally Smith belongs to a travel program. She saves up her points for two years until she has enough for a vacation package to 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?

  • yes, because it is based on the stated value of the trip
  • no, because Sally did not actually pay money for the trip
  • yes, because air points are commonly used and have a monetary value
  • no, because travel wholesalers are not covered by the Compensation Fund ---------CORRECT ANSWER-----------------no, because Sally did not actually pay money for the trip 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, 2010." The agent has also added the comment, "As discussed, some charges are non-refundable." TICO would view this receipt as
  • inadequate because, by law, the travel agent should have said, "As discussed on August 27 2010, some charges are not refundable."
  • inadequate because, by law, the travel agent must identify charges that are non-refundable
  • adequate because the travel agent has reminded the clients that the non- refundable charges were discussed during the sale of the package tour
  • adequate because the receipt includes the amount due, the date on which it is due, and the fact that some charges are non-refundable --------- CORRECT ANSWER-----------------inadequate because, by law, the travel agent must identify charges that are non-refundable 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?

  • Toronto
  • Toronto or Windsor
  • Windsor
  • Sudbury ---------CORRECT ANSWER-----------------Toronto or Windsor When payment is collected from the client the amount will be placed in a
  • Trust Account
  • Business Account
  • General Account
  • TICO Account ---------CORRECT ANSWER-----------------Trust Account Which of the following details does NOT have to be included on an invoice:
  • marketing details
  • agency's and counsellor's identification
  • customer identification
  • travel service details ---------CORRECT ANSWER-----------------Marketing Details A registrant does NOT need to offer the customer the choice of a full refund or comparable alternative travel services acceptable to the customer for which of the following?
  • where the contract permits a price increase, the cumulative increase is less than 7% of the total price
  • a different cruise has been substituted
  • the accommodation has been changed
  • where the contract does not permit a price increase and the total price of the travel services is increased, whatever the amount or reason ---------

A representation displayed on a billboard or bus board or any other medium with time or space limitation is NOT required to include? --------- CORRECT ANSWER-----------------Registrant's business name, address and registration number Contributions to the Compensation Fund by registrants must be made ------ ---CORRECT ANSWER-----------------Twice a year (at a six-month interval) 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? ---------CORRECT ANSWER------ -----------The travel wholesaler, which should have disclosed in its brochure information about construction or renovation of the property Is the TICO registration number required to be printed on the invoice issued by the Travel Agency or Wholesaler?

  • no, as long as the agency or wholesaler is a registrant
  • no, the registration number is displayed at the agency
  • yes, if the booking is paid in full
  • yes, as per section 38 of the regulations ---------CORRECT ANSWER------ -----------yes, as per section 38 of the regulations For all forms of representation, any statement made about a price must be clear, comprehensible, and prominent. All representations must include:
  • A base price, all fees, levies, service charges, and surcharges
  • show a picture of the travel service being sold
  • A base price, all fees, levies, surcharges and service fees do not need to be included
  • A base price, Provincial Sales Tax (PST) and Federal Goods and Service Tax (GST) ---------CORRECT ANSWER-----------------A base price, all fees, levies, service charges, and surcharges Which of the following reasons can claims against the Compensation Fund for the non-provision of travel services be made?
  • the failure of an airline or cruise line end supplier
  • travel services that the customer obtained with a voucher, certificate, coupon, or similar document that the customer did not pay for.
  • counseling fees paid to a travel agent
  • travel services that were to be received as a prize, award, or goodwill gesture ---------CORRECT ANSWER-----------------the failure of an airline or cruise line end supplier Peter purchases a round trip ticket through ABC Travel. On his date of travel, Peter arrives at the airport and discovers that his flight will be delayed for a few hours due to weather in his arriving city. Peter calls ABC Travel and the travel agent advises it is best for him to wait until the weather clears as that will be the first available flight. What the travel agent did was:
  • correct, as per section 38 of the regulations
  • incorrect, he should be compensated for the inconvenience
  • incorrect, the agent should have offered a full refund
  • correct however the agent should have offered a free upgrade --------- CORRECT ANSWER-----------------correct, as per section 38 of the regulations What does TICO stand for?
  • Travel Income Council of Ontario

Can the Registrar act as a Director?

  • yes, because the Registrar must be responsible for all decisions made
  • yes, because the Registrar is also the Chair of the Board of Directors
  • no, because the Director supervises the duties of the Registrar
  • no, because the Registrar supervises the duties of the Director --------- CORRECT ANSWER-----------------no, because the Director supervises the duties of the Registrar Who is TICO funded by? ---------CORRECT ANSWER-----------------Ontario Registrants TICO works with consumers to ensure that..... ---------CORRECT ANSWER-----------------They are aware of their rights under the travel industry act 2002 what 3 groups work with TICO to carry out its mandate? ---------CORRECT ANSWER-----------------The travel industry, the Provincial goverment, consumers describe the Ontario Travel industry act, 2002 ---------CORRECT ANSWER-----------------they set down the rules under which travel retainers and travel wholesalers must operate in ontario who conducts the registration and inspection of travel businesses in ontario? ---------CORRECT ANSWER-----------------TICO

what does TICO stand for? ---------CORRECT ANSWER-----------------Travel Industry Council of Ontario what does the travel industry act of ontario define a travel agent as? --------- CORRECT ANSWER-----------------a person who sells travel services provided by another person who does the compensation fund apply to? ---------CORRECT ANSWER---- -------------any one that purchases from a registered agency in ontario would the compensation fund apply to a manitoba conumer who purchases from a local agency that has a branch agency in Ontario ---------CORRECT ANSWER-----------------no true or false before counselling or advising a travel agent must inform the client of any counselling fee charged ---------CORRECT ANSWER------------- ----true does the travel agent have to show a picture of the travel services being sold? ---------CORRECT ANSWER-----------------no what does the term 'Representation' in the 2002 travel industry act refer to? ---------CORRECT ANSWER-----------------presentations of any type, including oral, print and electronic

what is the maximum % that the price can increase when paid in full --------- CORRECT ANSWER-----------------7% joe buys travel services from an agency. joe may be entitles to a full refund or a comparible alternative travel services if the flight is delayed by.... ------- --CORRECT ANSWER-----------------25 hours if it not because of weather 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? ---------CORRECT ANSWER-----------------the registrant true or false a travel agent must identify what charges are non refundable -- -------CORRECT ANSWER-----------------true can a travel agent tell part of the group about the travel documents needed for their trip? ---------CORRECT ANSWER-----------------they have to tell each client a client buys a vacation from a travel agency on may 1st. they are leaving on 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? ---------CORRECT ANSWER- ----------------june 1st when do travel agents need payment by? ---------CORRECT ANSWER------ -----------21 days before

how many days before departure does the travel agent have to produce the ticketing? ---------CORRECT ANSWER-----------------14 days before T or F when a client is offered the choice of a refund or comparable alternative travel services, the registrant is not required to write to the Travel Industry Compensation Fund stating that no claim is pending --------- CORRECT ANSWER-----------------true T or F when a client is offered the choice of a refund or comparable alternative travel services, the registrant is not required to note the method of communication used ---------CORRECT ANSWER-----------------false T or F when in a destination you can receive alternative transportation and money from the fund ---------CORRECT ANSWER-----------------false which of the following is not part of the travel industy compensation fund:

  • contributions from registrants
  • contributions from consumers
  • recoveries of money paid from the compensation fund
  • income earned on the money in the compensation fund ---------CORRECT ANSWER-----------------contributions from consumers could a client claim taxes paid on the travel services on the claim form for the travel industry compensation fund? ---------CORRECT ANSWER---------- -------yes

for a customer that never started their trip how long do they have to make a claim on the Compensation Fund? ---------CORRECT ANSWER--------------- --within 6 months of the registrant's or end supplier's failure for a customer that did start their trip how long do they have to make a claim on the compensation fund? ---------CORRECT ANSWER----------------- within 3 months of the registrant's or end supplier's failure according to the travel industry act of ontario, a travel agent who sells travel services to a customer must do what? ---------CORRECT ANSWER----------- ------- Advise the customer of trip cancellation insurance and out of province health insurance

  • disclose price, conditions, dates
  • tell them about proper documentation what mechanisims does the travel industry act of ontario use to protect the customer? ---------CORRECT ANSWER-----------------registration, compensation fund, trust accounts t or f the only 3 provinces in canada that have travel industry acts are Ontario, Quebec, Alberta ---------CORRECT ANSWER-----------------false t or f prices in brochures of travel agencies and travel wholesalers registered in the province of ontario must be in the currency of the country that the client is traveling to ---------CORRECT ANSWER-----------------false

t or f by July 1, 2009, all people involved in the sale of travel must have obtained the required certification from CITC to legally act as travel counsellors or travel managers ---------CORRECT ANSWER----------------- True t or f the maximum payout from the compensation fund for any one financial failure is $5,000,000 ---------CORRECT ANSWER----------------- True T or F travel agencies are not aloud to incluse home phone numbers in any advertisements ---------CORRECT ANSWER-----------------True T or F travel agencies contribute $1.00 to the compensation fund for each $1000.00 of gross sales. ---------CORRECT ANSWER-----------------False T or F because end suppliers do not contribute to the compensation fund, the compensation fund will not reimburse costomers for financial losses due to the bankruptcy of an end supplier ( with the exemption of an airline or a cruise line) ---------CORRECT ANSWER-----------------True T or F according to the travel industry act of ontario representations are a presentation of fact made to a consumer in person, in print or electronically ---------CORRECT ANSWER-----------------True T or F A company's email address can not be concered as the company's address in advertisements ---------CORRECT ANSWER-----------------True