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Tico Sample Exam - 1

24 Questions
Tico Sample Exam - 1

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Questions and Answers
  • 1. 
    The phrase “to promote a fair and informed marketplace where consumers can be confident of their travel purchases” is the
    • A. 

      Mission statement of the Ministry of Small Business and Consumer Services

    • B. 

      Mission statement of TICO

    • C. 

      Vision statement of TICO

    • D. 

      Purpose of the Travel Industry Act, 2002

  • 2. 
    • A. 

      Federal government

    • B. 

      Travel industry

    • C. 

      Ministry of Consumer and Corporate Affairs

    • D. 

      Ontario provincial government

  • 3. 
    TICO works with which three groups to carry out its mandate
    • A. 

      Consumers, travel retailers, the federal government

    • B. 

      Travel retailers, travel wholesalers and consumers

    • C. 

      The travel industry, the provincial government and consumers

    • D. 

      Suppliers, travel agents and consumers

  • 4. 
    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

  • 5. 
    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 ill 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 Small Business and 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

  • 6. 
    Can the Registrar act as a Directors?
    • A. 

      Yes—because the Registrar must be responsible for all decisions made

    • B. 

      Yes—because the Registrar is also the Chair of the Board of Directors

    • C. 

      No—because the Director supervises the duties of the Registrar

    • D. 

      No—because the Registrar supervises the duties of the Director

  • 7. 
    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

  • 8. 
    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

  • 9. 
    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 when even in a sun destination

  • 10. 
    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 and GST 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

  • 11. 
    A consumer selects a package tour from a tour wholesaler and chooses a hotel 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 hotel, which should have offered all its guests a set of ear plugs.

  • 12. 
    ABC, a wholesaler, has been selling XYZ Resort since the resort opened in 1965. 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 Travel 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 no photograph should be used in representations.

  • 13. 
    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, 2008.” 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 nonrefundable 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, 2008, some charges are non-refundable”

    • D. 

      Inadequate because, by law, the travel agent must identify charges that are non-refundable

  • 14. 
    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 of 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

  • 15. 
    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 to 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 29 (14 days after payment is received)

  • 16. 
    Which one of the following circumstances would NOT result in the travel agent having to offer the client a full refund or comparable alternate 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 GST or PST)

    • B. 

      Where a 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

    • D. 

      Where a different cruise ship has been substituted

  • 17. 
    When a client is offered the choice of a refund or comparable alternate travel services, the registrant is NOT required to
    • A. 

      Write to the Travel Industry Compensation Fund stating that no claim is pending

    • B. 

      Note the date on which the information was communicated to the client

    • C. 

      Note the method of communication used

    • D. 

      Note the choice the client made

  • 18. 
    Which of the following is NOT part of the Travel Industry Compensation Fund?
    • 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

  • 19. 
    • A. 

      Counselling fees paid to a travel agent

    • B. 

      Taxes paid on the travel services

    • C. 

      Insurance premiums

    • D. 

      Alternative services that were provided

  • 20. 
    If 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

  • 21. 
    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

  • 22. 
    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. TICO will
    • 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.

  • 23. 
    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 $2500.00. After Sally transfers the points to the travel wholesaler, the wholesaler declares bankruptcy. Sally files a claim on the Travel Industry Compensation Fund for $2500.00. 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.

  • 24. 
    • A. 

      No agent name

    • B. 

      No customer address

    • C. 

      Inadequate description of travel services – does not indicate travel dates or service providers

    • D. 

      No TICO Registration Number

    • E. 

      Does not include Form of Payment

    • F. 

      No indication whether amounts are refundable or not

    • G. 

      No indication whether contract permits price increases and any limits on price increases if they are permitted

    • H. 

      No ticket number

    • I. 

      No indication whether customer purchased trip cancellation insurance

    • J. 

      No picture to represent actual location

    • K. 

      No indication whether customer purchased out-of-province health insurance