TICO 2024 Practice Exam Questions and Answers 100% Accurate, Exams of Transport economics

Download TICO 2024 Practice Exam Questions and Answers 100% Accurate and more Exams Transport economics in PDF only on Docsity! TICO 2024 Practice Exam Questions and Answers 100% Accurate 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. 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 ABC Travel puts an advertisement in the newspaper that announces a package holiday "From $999 and up." TICO would not consider this acceptable because a. the price should have been shown as $999.00 to prevent any confusion b. registrants are required to include PST, GST and HST in the advertised price c. the Regulation states that consumers must know the exact cost of all the travel services provided d. the advertisement did not specifically state whether the price is in Canadian or U.S. dollars - ANSWER-c. the Regulation states that consumers must know the exact cost of all the travel services provided d. income earned on the money in the Compensation Fund - 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 - 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 - ANSWER-a. $5,000 per person 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? a. Toronto b. Toronto or Windsor c. Windsor d. Sudbury - ANSWER-b. Toronto or Windsor Joe Smith is a travel agent with ABC Travel. He went out of his way to ensure that all the travel arrangements for Dorothy and David Black were "perfect." The couple paid ABC Travel and then ABC Travel forwarded the funds to the travel wholesaler. When the travel wholesaler declared 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 - 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 - 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 - 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 $10,000.00 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 - ANSWER-a. refundable security deposit of $10,000.00 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 - 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 c. two years d. five years - ANSWER-c. two years The landlord of the building where ABC Travel 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 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 relocation - ANSWER-a. the agency must inform TICO at least five days before the move 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 - ANSWER-c. the individual invoices sent to customers during a specific period 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 money c. issue refunds to customers d. transfer a registrant's commission to the general account after the travel wholesaler has been paid - 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 - 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