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TICO FINAL EXAM PAPER 2026
QUESTIONS WITH VERIFIED SOLUTIONS
GRADED A+
⩥ 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)
⩥ 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 fligh. 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. 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. 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, 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. 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 ⩥ 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
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. 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. 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
- On which date must the travel wholesaler produce the tickets, vouchers, itinerary, and other related documents for the travel agent? a. June 1 (14 days before departure) b. May 24 (21 days before departure) c. June 8 (7 days before departure) d. May 22 (14 days after payment is received). Answer: a. June 1 ( days before departure) ⩥ 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? a. 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) b. where the scheduled departure of any transportation is delayed or advanced by 12 hours or less c. 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. 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
