Free TICO Destination Knowledge Questions and Answers 1

Question 1

The Travel Industry Compensation Fund applies to

Accepted Answer

Manitoba consumers who purchase travel from an Ontario travel agency

Answer

Ontario consumers who purchase travel from any travel agency in Canada

Answer

Ontario consumers who travel exclusively in Ontario

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Answer

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

Answer

that a counselling fee is applied by the agent

Question 3

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?

Accepted Answer

June 1 (14 days before departure)

Answer

May 22 (14 days after payment is received)

Answer

June 8 (7 days before departure)

Answer

May 24 (21 days before departure)

Question 4

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

Accepted Answer

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

Answer

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

Answer

the length of time the agency has been in business

Answer

the number of employees the agency has

Question 5

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?

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

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?

Accepted Answer

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

Answer

no, the investigator cannot enter the premises without the warrant

Answer

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

Answer

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

Question 7

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?

Accepted Answer

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

Answer

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

Answer

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)

Answer

where a different cruise ship has been substituted

Question 8

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?

Accepted Answer

yes, if he provides security in lieu of trust accounting

Answer

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

Answer

no, he must operate a trust account

Answer

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

Question 9

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?

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 10

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?

Accepted Answer

Toronto or Windsor

Answer

Sudbury

Answer

Windsor

Answer

Toronto