TICO Ontario Regulation 26/05 2

Question 1

Ontario Regulation 26/05 was made under which Ontario statute?

Accepted Answer

The Travel Industry Act, 2002

Answer

The Consumer Protection Act, 2002

Answer

The Business Corporations Act

Answer

The Ontario Tourism Act

Question 2

Under Ontario Regulation 26/05, what must the balance in a travel agency's designated trust account always equal?

Accepted Answer

An amount equal to all client funds received that have not yet been remitted to suppliers or earned as the agent's commission

Answer

A fixed minimum of $50,000 regardless of business volume

Answer

An amount equal to one month's projected travel sales

Answer

No minimum is specified; the account must simply exist

Question 3

Under Ontario Regulation 26/05, which of the following is a prohibited trade practice for travel registrants?

Accepted Answer

Charging an undisclosed fee that was not disclosed before the client made payment

Answer

Offering loyalty program points in addition to the travel service

Answer

Providing a written receipt for all payments received

Answer

Recommending comprehensive travel insurance to all clients

Question 4

Ontario Regulation 26/05 requires a travel agent to have a written booking confirmation with the consumer. When must this document be provided?

Accepted Answer

Before or at the time of final payment

Answer

Within 14 days of the initial deposit

Answer

Only upon the consumer's written request

Answer

After departure, as a receipt for services rendered

Question 5

Under Ontario Regulation 26/05, which records must a travel registrant maintain in their files?

Accepted Answer

Written confirmation of all travel services purchased, trust account records, and records of all complaints received

Answer

Only receipts for client payments over $1,000

Answer

Marketing materials and staff scheduling records only

Answer

Records are only required for bookings made through global distribution systems (GDS)

Question 6

Under Ontario Regulation 26/05, what disclosure is required regarding travel advisories issued by the Government of Canada?

Accepted Answer

Registrants must advise consumers of any applicable travel advisories before the booking is confirmed

Answer

Travel advisory disclosure is optional and at the agent's professional discretion

Answer

Travel advisories only need to be disclosed for Level 4 (Avoid all travel) destinations

Answer

Advisories must be disclosed only after the consumer has paid their full balance