Practice Test GeeksTICO - Travel Industry Council of Ontario Practice Test
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Compliance and Enforcement Flashcards

7 cards from real TICO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Compliance and Enforcement flashcards as text

  1. Under TICO's enforcement framework, what is the first step a TICO inspector typically takes when initiating a compliance audit of a registered travel agency?

    Answer: Provide advance written notice of the inspection to the registrant

    TICO inspectors generally provide advance written notice to registrants before conducting compliance audits, though unannounced inspections are permitted in certain circumstances.

  2. A travel agent falsely advertises an all-inclusive resort as 'beachfront' when it is actually 500 meters from the beach. Under TICO's compliance rules, this most likely constitutes:

    Answer: Misleading advertising that could result in disciplinary action

    Misleading advertising that misrepresents travel products to consumers is a violation of TICO's Code of Ethics and can lead to disciplinary proceedings.

  3. When TICO issues an order to a registrant to pay restitution to a consumer, and the registrant refuses to comply, TICO's next enforcement option is most likely to:

    Answer: Pursue suspension or revocation of the registrant's TICO registration

    Non-compliance with TICO orders can escalate to suspension or revocation of registration, which is one of TICO's most powerful enforcement tools.

  4. A travel agency's registration renewal is denied by TICO due to outstanding compliance issues. The agency owner disagrees with this decision. What is the correct recourse?

    Answer: Request a hearing before the Licence Appeal Tribunal (LAT)

    Registrants who disagree with TICO's registration decisions have the right to request a hearing before the Licence Appeal Tribunal (LAT), an independent adjudicative tribunal.

  5. Under the Travel Industry Act, 2002, which of the following actions by a registrant would constitute a conflict of interest that TICO must be notified about?

    Answer: An officer of the agency having a financial interest in a supplier being recommended to clients

    A registrant's officer having an undisclosed financial interest in recommended suppliers creates a conflict of interest that must be disclosed to TICO and clients.

  6. A TICO-registered travel agency is found to have been operating without maintaining the required trust account. Under TICO enforcement, which penalty is most appropriate?

    Answer: A fine of up to $50,000 and possible registration suspension

    Failure to maintain required trust accounts is a serious violation that can result in significant fines and suspension or revocation of registration under the Travel Industry Act, 2002.

  7. Which scenario would most likely trigger TICO to conduct an unannounced inspection of a travel agency?

    Answer: Multiple consumer complaints allege the agency is misappropriating client funds

    Multiple consumer complaints about fund misappropriation represent a serious risk to consumers and would likely trigger an immediate unannounced inspection by TICO.