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

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  1. Under the Travel Industry Act, 2002, which of the following individuals is considered a 'registrant' subject to TICO's compliance and enforcement authority?

    Answer: An Ontario-based operator selling travel packages directly to consumers

    Under the Travel Industry Act, 2002, operators who sell travel services directly to consumers in Ontario must be registered with TICO and are subject to its enforcement authority.

  2. A TICO registrant self-discloses a compliance breach to TICO before it is discovered during an audit. How does TICO typically treat voluntary self-disclosure?

    Answer: Voluntary disclosure may be considered a mitigating factor in determining penalties

    Voluntary self-disclosure of compliance issues is generally viewed as a mitigating factor by TICO, potentially resulting in reduced penalties compared to violations discovered through audit.

  3. A travel agent continues selling travel services after their individual TICO registration has lapsed. Under the Travel Industry Act, 2002, this individual is:

    Answer: Acting illegally and subject to prosecution and fines

    Selling travel services without a valid TICO registration is illegal under the Travel Industry Act, 2002, and can result in prosecution and significant fines.

  4. TICO's compliance monitoring includes reviewing trust account records. Which of the following would be a RED FLAG in a trust account audit?

    Answer: Client funds being withdrawn before travel services are fully delivered and supplier invoices paid

    Withdrawing client funds from trust before services are delivered and suppliers are paid is a serious violation indicating possible misappropriation of trust funds.

  5. During a TICO compliance review, an inspector discovers that a travel agency is not providing written contracts to consumers for travel packages over $100. This is:

    Answer: A violation of TICO's mandatory disclosure requirements

    TICO's regulations require registrants to provide written contracts containing specific mandatory disclosure information for travel packages, regardless of how the booking is made.

  6. A travel agency's principal (owner) is convicted of fraud unrelated to the travel industry. What action can TICO take regarding the agency's registration?

    Answer: TICO can consider the conviction as grounds to refuse renewal or revoke registration

    TICO can consider a principal's criminal convictions, including those unrelated to travel, when assessing the suitability of a registrant, as character and integrity are fundamental to registration.

  7. When TICO imposes conditions on a registrant's registration as part of an enforcement action, the registrant must:

    Answer: Comply with all imposed conditions or risk further enforcement action including revocation

    Conditions imposed by TICO on a registration are legally binding and must be complied with; failure to do so can escalate enforcement to suspension or revocation.