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TICO is funded by a. the Ontario government b. consumers c. Ontario registrants d. the Canadian travel industry - ANSWER-c. Ontario registrants ... [Show More] TICO works with consumers to ensure that a. they are aware of their rights under the Travel Industry Act, 2002 b. they take their vacations in Ontario c. the travel industry is promoted to consumers d. consumers receive the lowest price from travel agents - ANSWER-a. they are aware of their rights under the Travel Industry Act, 2002 TICO enhances industry professionalism in many ways, including a. offering courses to travel counsellors to enhance their skill b. maintaining an informative and up-to-date website c. encouraging consumers to consider a career in travel d. working with end suppliers - ANSWER-b. maintaining an informative and up-to-date website The registration and inspection of travel businesses in Ontario is conducted by a. the federal government b. International Air Transport Association (IATA) c. the Ministry of Consumer Services d. the Travel Industry Council of Ontario (TICO) - ANSWER-d. the Travel Industry Council of Ontario (TICO) The Travel Industry Act, 2002 defines travel agent as a. a person who owns and operates a travel service b. a person who sells travel services provided by another person c. a person who sells travel services to other travel agents and wholesalers d. a person who conducts sightseeing tours - ANSWER-b. a person who sells travel services provided by another person The Travel Industry Compensation Fund applies to a. Ontario consumers who purchase travel from any travel agency in Canada b. Manitoba consumers who purchase travel from an Ontario travel agency c. Manitoba consumers who purchase from a local agency that has a branch agency in Ontario d. Ontario consumers who travel exclusively in Ontario - ANSWER-b. Manitoba consumers who purchase travel from an Ontario travel agency In cases where the Registrar issues a false advertising order because a registrant's advertising violates the Act, when does the order take effect? a. on the date the advertisement would next have appeared b. immediately c. one week after the order is issued d. one month after the order is issued - ANSWER-b. immediately ABC agency is promoting a resort on its website. It has included an artist's drawing of the resort as part of the representation. Would TICO approve of this? a. no, because only photographs may be used in a representation b. yes, as long as the representation states that the drawing is fairly accurate c. no, unless the date on which the drawing was made is included d. yes, as long as the drawing is accurate and the representation states that the drawing is not a photograph - ANSWER-d. yes, as long as the drawing is accurate and the representation states that the drawing is not a photograph When a travel agent publishes a price in a tour brochure or similar representation, Ontario Regulation 26/05 demands that he or she show a. Provincial Sales Tax (PST) b. Goods and Services Tax (GST) c. Harmonized Sales Tax (HST) d. All taxes except PST, GST and HST - ANSWER-d. All taxes except PST, GST and HST The statement included on the customer's invoice says that price increases are permitted. The customer will have to pay more if the price is increased by a. 7% after the customer has paid in full b. 5% before the customer has paid in full c. 10% before the customer has paid in full d. 8% before the customer has paid in full - ANSWER-b. 5% before the customer has paid in full Joe Smith purchases travel services from ABC agency, which includes a scheduled flight. Joe may be entitled to a full immediate refund or comparable alternative travel services if the scheduled flight is delayed by a. 12 hours b. 25 hours because of a severe snow storm c. 25 hours d. 12 hours because of safety considerations - ANSWER-c. 25 hours Whose responsibility is it to check that a client's accommodation is going to be in the same condition as when it was described to the client at the time of purchase? a. client b. Registrar c. registrant d. hotel supplying the accommodation - ANSWER-c. registrant Which item takes precedence over other claims on the Travel Industry Compensation Fund? Payments for a. immediate departure b. trip interruption c. trip completion d. a major event - ANSWER-c. trip completion Joe Smith purchases a package tour from ABC agency that includes a return economy flight. The airline end supplier becomes bankrupt during Joe's trip and he is stranded at the destination. He purchases a business class flight home and then makes a claim on the Compensation Fund for his trip completion expenses. Will his trip completion expense claim be successful? a. yes, because he was forced to make his own arrangements to get home as the Director did not direct payments for trip completion b. no, because trip completion expense claims may only be made when a trip cannot be completed because travel services were not provided as a result of the failure of a registrant c. yes, because the Fund is primarily concerned with "trip completion" and getting stranded Ontarians home d. no, because he purchased a business class flight and he had to obtain services comparable to those originally purchased (i.e. an economy flight) - ANSWER-b. no, because trip completion expense claims may only be made when a trip cannot be completed because travel services were not provided as a result of the failure of a registrant A consumer who wishes to make a standard claim on the Compensation Fund for travel services paid for but not provided must do so a. any time; there is no limitation b. immediately c. within three months of the registrant's or end supplier's failure d. within six months of the registrant's or end supplier's failure - ANSWER-d. within six months of the registrant's or end supplier's failure According to the Travel Industry Act, 2002, which of the following must be compliant with the Education Standards in a travel agency? a. all staff no matter what their role is in the agency b. all staff providing information about travel services to the public c. only the owner of the agency d. only the owner and the supervisor/manager of the agency - ANSWER-b. all staff providing information about travel services to the public What is the maximum penalty for a corporation that commits an offence under the Travel Industry Act, 2002? a. $250,000 b. $50,000 c. two years less a day in prison d. $50,000 and two years less a day in prison - ANSWER-a. $250,000 Which of the following must register under the Travel Industry Act, 2002? a. an end supplier b. a travel agency in North Bay c. a travel agency in Saskatoon d. an educational institution in Ottawa - ANSWER-b. a travel agency in North Bay "Sales in Ontario" refers to a. the amount paid to or through a travel agent or travel wholesaler for services sold in Ontario during a given period of time b. the amount paid to travel agents only, for services sold to Ontario consumers during a given period of time c. the amount paid to travel wholesalers only, for all travel bookings originating in Ontario during a given period of time d. an annual list of travellers who booked through an Ontario-registered travel agent or wholesaler - ANSWER-a. the amount paid to or through a travel agent or travel wholesaler for services sold in Ontario during a given period of time When registrants provide a security deposit, how many annual financial statements must they file before being eligible to have the security deposit returned? a. none b. one annual financial statement c. two annual financial statements d. two consecutive annual financial statements - ANSWER-d. two consecutive annual financial statements 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? a. yes, but only after money is transferred from the general account to the trust account b. yes, because the trust account can be used for operating expenses such as advertising c. no, because only the general account can be used for operating expenses d. no, because ABC does not have to maintain a trust account after being in business for six months - ANSWER-c. no, because only the general account can be used for operating expenses A consumer is dissatisfied with a vacation tour package purchased from a travel agent at ABC Travel in Ontario. Who should the consumer approach first to make a complaint? a. TICO b. Ministry of Consumer Services c. ABC Travel d. a lawyer - ANSWER-c. ABC Travel 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? a. TICO has the authority to impose a settlement in a dispute. b. TICO will hear complaints between a consumer and an unregistered travel agent. c. TICO staff will review the complaint against the requirements of the Act and Regulation to determine if the registrant met their obligations. d. A complainant must fill out a complaint form and include information and supporting documents. - ANSWER-a. TICO has the authority to impose a settlement in a dispute. Which one of the following complaints would NOT be heard by the Complaints Committee of TICO? a. a registrant feels that he is being unfairly targeted for TICO inspections b. a registrant wishes to dispute a Notice of Proposal to Revoke Registration c. a consumer is unhappy with the action that TICO took against a registrant d. a registrant is dissatisfied with the services provided by TICO staff - ANSWER-b. a registrant wishes to dispute a Notice of Proposal to Revoke Registration If a person refuses to comply with the Travel Industry Act, 2002 or Ontario Regulation 26/05, TICO can take a number of actions to correct the situation. Which of the following would TICO NOT be able to do? a. apply to the Superior Court of Justice for an order directing the person to comply b. begin an investigation c. obtain and execute a search warrant d. conduct a surprise raid on the person's home between 10:00 p.m. and 2:00 a.m. - ANSWER-d. conduct a surprise raid on the person's home between 10:00 p.m. and 2:00 a.m. Individuals convicted of an offence may face a. a fine of up to $50,000 b. imprisonment for a term of up to two years less a day c. both a fine of up to $50,000 and imprisonment for a term of up to two years less a day d. both a fine of up to $250,000 and imprisonment for a term of up to two years less a day - ANSWER-c. both a fine of up to $50,000 and imprisonment for a term of up to two years less a day Restitution refers to a. a duty b. a tax c. compensation d. court fines - ANSWER-c. compensation The phrase "to promote a fair and informed marketplace where consumers can be confident in their travel purchases" is the a. mission statement of the Ministry of Consumer Services b. mission statement of TICO c. vision statement of TICO d. purpose of the Travel Industry Act, 2002 - ANSWER-b. mission statement of TICO The administration of the Travel Industry Act, 2002 was delegated to TICO by the a. federal government b. travel industry c. Ministry of Consumer and Corporate Affairs d. Ontario provincial government - ANSWER-d. Ontario provincial government TICO works with which three groups to carry out its mandate? a. consumers, travel retailers, the federal government b. travel retailers, travel wholesalers, consumers c. the travel industry, the provincial government, consumers d. suppliers, travel agents, consumers - ANSWER-c. the travel industry, the provincial government, consumers 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 - ANSWER-b. sets down the rules under which travel retailers and travel wholesalers must operate in Ontario 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 will 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 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 - ANSWER-a. Ontario Regulation 26/05 provides that TICO's Registrar must make these details available to the public Who is the Statutory Director appointed by? a. the Registrar b. the Minister c. the TICO Board of Directors d. the Premier - ANSWER-c. the TICO Board of Directors 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 - ANSWER-a. inform the client of any counselling fee charged 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 - ANSWER-c. presentations of any type, including oral, print, and electronic 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, even in a sun destination - ANSWER-d. that some days can be cloudy, even in a sun destination [Show Less]
Who is TICO funded by? - ANSWER-Ontario Registrants TICO works with consumers to ensure that..... - ANSWER-They are aware of their rights under the trav... [Show More] el industry act 2002 what 3 groups work with TICO to carry out its mandate? - ANSWER-The travel industry, the Provincial goverment, consumers describe the Ontario Travel industry act, 2002 - ANSWER-they set down the rules under which travel retainers and travel wholesalers must operate in ontario who conducts the registration and inspection of travel businesses in ontario? - ANSWER-TICO what does TICO stand for? - ANSWER-Travel Industry Council of Ontario what does the travel industry act of ontario define a travel agent as? - ANSWER-a person who sells travel services provided by another person who does the compensation fund apply to? - ANSWER-any one that purchases from a registered agency in ontario would the compensation fund apply to a manitoba conumer who purchases from a local agency that has a branch agency in Ontario - ANSWER-no true or false before counselling or advising a travel agent must inform the client of any counselling fee charged - ANSWER-true does the travel agent have to show a picture of the travel services being sold? - ANSWER-no what does the term 'Representation' in the 2002 travel industry act refer to? - ANSWER-presentations of any type, including oral, print and electronic in cases where the Registrar issues a false advertising order because a registrant's advertising violates the Act, when does the order take effect? - ANSWER-immediately true or false according to the travel industry act 2002 the travel agent does not have to inform a client before booking that some days can be cloudy even in a sun destination? - ANSWER-true true or false according to the travel industry act 2002 a travel agent does not have to inform a client before booking that a counselling fee is applied by the agent - ANSWER-false why would TICO not accept 'From $999' as an acceptable newspaper ad? - ANSWER-because it is open ended and it also does not state if taxes are included an agency is promoting a resort on its website. they included a drawing of the resort. would TICO approve of this? - ANSWER-yes, as long as the drawing is accurate and the representation states that the drawing is not a photograph what is something that the ontario regulation 26/05 demands that is included in a newspaper ad that has prices listed? - ANSWER-all taxes except PST and HST what is the maximum % that the price can increase when paid in full - ANSWER-7% joe buys travel services from an agency. joe may be entitles to a full refund or a comparible alternative travel services if the flight is delayed by.... - ANSWER-25 hours if it not because of weather whose responsibility is it to check that a client's accommodation is going to be in the same condition as when it was described to the client at the time of purchase? - ANSWER-the registrant true or false a travel agent must identify what charges are non refundable - ANSWER-true can a travel agent tell part of the group about the travel documents needed for their trip? - ANSWER-they have to tell each client a client buys a vacation from a travel agency on may 1st. they are leaving on 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? - ANSWER-june 1st when do travel agents need payment by? - ANSWER-21 days before how many days before departure does the travel agent have to produce the ticketing? - ANSWER-14 days before T or F when a client is offered the choice of a refund or comparable alternative travel services, the registrant is not required to write to the Travel Industry Compensation Fund stating that no claim is pending - ANSWER-true T or F when a client is offered the choice of a refund or comparable alternative travel services, the registrant is not required to note the method of communication used - ANSWER-false T or F when in a destination you can receive alternative transportation and money from the fund - ANSWER-false which of the following is not part of the travel industy compensation fund: - contributions from registrants - contributions from consumers - recoveries of money paid from the compensation fund - income earned on the money in the compensation fund - ANSWER-contributions from consumers could a client claim taxes paid on the travel services on the claim form for the travel industry compensation fund? - ANSWER-yes could a client claim insurance premiums on the claim form for the travel industry compensation fund? - ANSWER-no if a consumer makes a claim against the Travel Compensation Fund and the TICO Board accepts the claim, what is the maximum amount payable? - ANSWER-$5,000 per person which item would take precedence over other claims on the Travel Industry Compensation fund? and why? - ANSWER-trip cancellation - people stuck in the destination with no way of getting home joe purchased a package from ABC agency that includes a return economy flight. The airline and supplier becomes bankrupt during Joe's trip and he is standed at the desitnation. he buys a business class flight home and then makes a claim to the compensation fund. Will his claim for reimbursement of the flight be sucessful? - ANSWER-no, because the Fund will cover only the value of the unused portion of the original ticket. not the upgrade to business class a couple paid their travel agency and then they forwarded the funds to the travel wholesaler. when the travel wholesaler declared bankruptcy and the trip was ruined, they made a claim to the Travel Industry Compensation Fund for thr $75.00 service fee he charged as a destination specialist. will tico accept the claim? - ANSWER-they will refuse the claim because the compensation fund does not cover service fees does the compensation fund cover service fees? - ANSWER-no for a customer that never started their trip how long do they have to make a claim on the Compensation Fund? - ANSWER-within 6 months of the registrant's or end supplier's failure for a customer that did start their trip how long do they have to make a claim on the compensation fund? - ANSWER-within 3 months of the registrant's or end supplier's failure according to the travel industry act of ontario, a travel agent who sells travel services to a customer must do what? - ANSWER-- Advise the customer of trip cancellation insurance and out of province health insurance - disclose price, conditions, dates - tell them about proper documentation what mechanisims does the travel industry act of ontario use to protect the customer? - ANSWER-registration, compensation fund, trust accounts t or f the only 3 provinces in canada that have travel industry acts are Ontario, Quebec, Alberta - ANSWER-false t or f prices in brochures of travel agencies and travel wholesalers registered in the province of ontario must be in the currency of the country that the client is traveling to - ANSWER-false t or f by July 1, 2009, all people involved in the sale of travel must have obtained the required certification from CITC to legally act as travel counsellors or travel managers - ANSWER-True t or f the maximum payout from the compensation fund for any one financial failure is $5,000,000 - ANSWER-True T or F travel agencies are not aloud to incluse home phone numbers in any advertisements - ANSWER-True T or F travel agencies contribute $1.00 to the compensation fund for each $1000.00 of gross sales. - ANSWER-False T or F because end suppliers do not contribute to the compensation fund, the compensation fund will not reimburse costomers for financial losses due to the bankruptcy of an end supplier ( with the exemption of an airline or a cruise line) - ANSWER-True T or F according to the travel industry act of ontario representations are a presentation of fact made to a consumer in person, in print or electronically - ANSWER-True T or F A company's email address can not be concered as the company's address in advertisements - ANSWER-True [Show Less]
John is a student who has decided to create his own company to provide walking tours in his hometown of Thunder Bay. Some tourists book a tour, but becaus... [Show More] e John has the flu, he does not show up. The tourists complain to TICO that their afternoon was ruined. Why is TICO unable to assist these consumers? a. a tour guide is considered to be an end supplier and is therefore exempt from registering with TICO b. John should have registered with TICO because he is providing a type of travel service c. having the flu is considered to be a force majeure, so the tourists have no grounds for complaint d. anyone selling guide or sightseeing services in Ontario is exempt from having to register with TICO - ANSWER-d Ontario Regulation 26/05 states that a person who has not registered with TICO in the previous 12 months must provide a a. refundable security deposit of $10,000.00 b. non-refundable security deposit of $10,000.00 c. promissory note, authorized by a lawyer, in the amount of $10,000.00 d. refundable security deposit of $25,000.00 - ANSWER-a A man has violated the Travel Industry Act, 2002 by providing services as a travel agent without actually being registered. As a result of his conviction, the penalty could be a. a fine of not more than $50,000 b. imprisonment for a term of not more than two years less a day c. a fine of not more than $250,000 d. both a fine of not more than $50,000 and imprisonment for a term of not more than two years less a day - ANSWER-d The time limit for prosecuting offences under the Act is no more than ___________ after the Director first becomes aware of the facts on which the proceeding is based. Fill in the blank with the correct answer from one of the following: a. six months b. one year c. two years d. five years - ANSWER-c The landlord of the building where ABC Travel Agency is located, is planning a major renovation. ABC Travel is forced to find another location until the renovation is completed. What is ABC Travel's duty as far as TICO is concerned? a. the agency must inform TICO, in writing, at least five days before the move b. the agency need not inform TICO, because the move is only a temporary one c. the agency need not inform TICO as long as the agency changes its phone message and puts a note on the door of its main premises to alert customers of the temporary relocation d. the agency must inform TICO within a reasonable time of the move, even though it is only a temporary move. - ANSWER-a As defined in Ontario Regulation 26/05, a financial statement does NOT need to include a. a statement of sales in Ontario made during a specific period b. a balance sheet or income statement c. the individual invoices sent to customers during a specific period d. a reconciliation of the trust account with customer deposits - ANSWER-c A trust account may NOT be used to a. borrow funds to keep the travel agency profitable if a customer is late in paying for a package tour b. pay a wholesaler for the package tour for which the travel agency has received the money c. issue refunds to customers d. transfer a registrant's commission to the general account after the travel wholesaler has been paid - ANSWER-a The amount of working capital required by a travel agency is based on which of the following? a. The length of time the agency has been in business b. the number of employees the agency has c. the agency's sales in Ontario during the previous fiscal year d. the number of bookings the agency made during the previous fiscal year - ANSWER-c All agencies are required to maintain business records. Which of the following does NOT fall under the category of business records? a. accounting and banking files b. brochures that identify destinations and accommodations c. payment records d. files containing client options regarding refund or alternative travel services - ANSWER-b 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? a. no, he must operate a trust account b. yes, as long as the general account contains the equivalent of sales from the past 12 months he can close the business's trust account c. no, he must be in business for three fiscal years before he can choose not to operate a trust account d. Yes, if he provides security in lieu of trust accounting. - ANSWER-d When a consumer makes a complaint about a registrant to TICO, what will the Registrar do? a. attempt to mediate or resolve the complaint b. call the police to investigate c. close the agency until the matter is resolved d. seize the registrant's documents and records - ANSWER-a The manager of ABC Travel is on holiday. At 10:00 a.m., a TICO inspector arrives to inspect the financial records. While the agency's staff know where the records are kept, they refuse to open the files, telling the inspector that the manager will be back in two weeks and the inspector will have to wait. According to Ontario Regulation 26/05, this is a. a reasonable request and the inspector will have to return in two weeks b. an unreasonable request because the staff are required to assist the inspector c. a reasonable request because the inspector is supposed to provide 30 days' notice of his intent to inspect the agency records d. an unreasonable request because an inspector can only enter the agency between 11:00 a.m.and 3:00 p.m. - ANSWER-b 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? a. yes, as long as it is within the hours of 6:00 am and 9:00 pm b. no, the investigator cannot enter the premises without the warrant c. yes, exigent circumstances allow for the investigator to enter and search the premises d. no, the investigator can enter only if accompanied by the police - ANSWER-c If a person has defaulted on paying a fine for an offence, TICO can do which of the following? a. impose an additional fine of $25,000 and a sentence of up to two years in jail b. place a lien on real estate or personal property of the person in default c. borrow the money from the Travel Industry Compensation Fund until the person pays d. ban the person from ever working in a travel agency again. - ANSWER-b According to the Travel Industry Act, 2002, which of the following must be compliant with the Education Standards in a travel agency? a. all staff no matter what their role is in the agency [Show Less]
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 Min... [Show More] istry of Consumer Services b. mission statement of TICO c. vision statement of TICO d. purpose of the Travel Industry Act, 2002 - ANSWER-b The administration of the Travel Industry Act, 2002 was delegated to TICO by the a. federal government b. travel industry c. Ministry of Consumer and Corporate Affairs d. Ontario provincial government - ANSWER-d 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 - ANSWER-c 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 - ANSWER-b 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 will 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 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 - ANSWER-a Who is the Statutory Director appointed by? a. the Registrar b. the Minister c. the TICO Board of Directors d. the Premier - ANSWER-c 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 - ANSWER-a 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 - ANSWER-c 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, even in a sun destination - ANSWER-d 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, GST and HST 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 - ANSWER-c A consumer selects a package tour from a tour wholesaler's brochure. The hotel included in the package is 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 construction company, which should have offered all its guests a set of ear plugs. - ANSWER-b 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. - ANSWER-b 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, 2011." 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, 2011, some charges are non-refundable" d. inadequate because, by law, the travel agent must identify charges that are non-refundable - ANSWER-d 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 - ANSWER-b 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) - ANSWER-a 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 PST, GST or HST) 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 - ANSWER-b 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 - ANSWER-a 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 - ANSWER-a Which of the following could a client claim from the Travel Industry Compensation Fund? a. counselling fees paid to a travel agent b. taxes paid on the travel services c. insurance premiums d. travel services that were to be received as a prize - ANSWER-b [Show Less]
What are the four main obligations that a registrant must meet after a sale but before the client departs on the trip? - ANSWER-invoicing requirements, req... [Show More] uirements to inform customers of any changes that might affect their purchase, requirements to verify travel wholesaler documents, requirements for a travel wholesaler to provide travel services Section 38(1) of the Regulation - ANSWER-After making a sale, a travel agent must promptly issue the customer a statement, invoice, or receipt. A statement, invoice, or receipt can be more than one page, as long as the first page: - ANSWER-shows that more pages follow. Agency's and counsellors' identification - ANSWER-the name under which the travel agent carries on business, the travel agent's business address, telephone, and registration numbers, contact information such as the travel agent's fax number and email address, the name of the travel counsellor who made the booking and accepted the first payment Customer identification - ANSWER-the name and address of the person who purchased the travel services, the name, if known, of each person on whose behalf the payment is made (that is, those people travelling) Travel services details - ANSWER-the date of the booking, a fair and accurate description of the travel services contracted for, including destination, departure date, and names of the persons who will provide the travel services, if the travel agent sells insurance, a statement whether or not the customer has purchased trip cancellation insurance and, if applicable, out-of-province health insurance, if the travel agent does not sell insurance, a statement whether the customer was advised of the availability of trip cancellation insurance and, if applicable, out-of-province health insurance, the advice given to the customer regarding the typical information and travel documents (passport, visas, etc.) needed for each person for whom travel services were purchased, a statement that entry to a country may be refused even if the required information and travel documents are complete a statement that living standards and practices at the destination may differ from those in Canada, and that the standards and conditions concerning the provision of utilities, services, or accommodation may differ Payment details - ANSWER-the date of the first payment the amount of the payment and whether it is full or partial payment the amount of any balance owing, if known, and the date when it is to be paid any fees, levies, service charges, surcharges, taxes and other charges, and whether these amounts are refundable or non-refundable the total price of the travel services purchased whether or not the contract permits price increases. If it does permit price increases, then the following statements must be added: a statement that no price increases are permitted after the customer has paid in full; and a statement that if the total price of the travel services is increased and the cumulative increase is more than 7%, then the customer has the right to cancel the contract and obtain a full refund. if the cumulative increase is more than 7% because of increases in GST, PST, or HST: - ANSWER-the full refund does not apply Section 38(2) of the Regulation - ANSWER-For any travel service that a travel agent sells on behalf of a travel wholesaler, the wholesaler must promptly issue the agent a statement, invoice, or receipt. The document the wholesaler provides to the agent must include: - ANSWER-the name and address of the travel agent through whom the wholesaler is selling the travel service the terms of payment and amount paid the name of each customer and, if known, each other per-son for whom the travel service is being purchased the destination of each customer and other person and, if relevant, the departure date Section 37 of the Regulation - ANSWER-The disclosure requirement applies specifically to representations (most commonly advertisements) in which changes to the details are made after a customer has purchased the travel services. If a travel agent or travel wholesaler becomes aware of such a change, then he or she must inform the customer promptly. Any change - such as a change in price, carrier, dates, or quality of accommodation - could affect the customer's decision to travel. Section 40 of the Regulation - ANSWER-If a registrant becomes aware that one of the following situations or events has occurred, he or she must promptly inform the customer or travel agent and offer the customer the choice of a full refund immediately or comparable alternative travel services acceptable to the customer. a registrant must promptly inform the customer or travel agent and offer the customer the choice of a full refund immediately or comparable alternative travel services acceptable to the customer if the registrant becomes aware of any of the following: - ANSWER-a different cruise ship has been substituted; the accommodation or standard of accommodation has been changed; where the contract permits a price increase, the cumulative increase is more than 7% of the total price (excluding increases caused by an increase in PST, GST or HST); where the contract does not permit a price increase and the total price of the travel services is increased, whatever the amount or reason; the documents needed for the trip change because the transportation routing has changed and there is not enough time for the person to obtain the documents before the departure date; or the scheduled departure of any transportation is delayed or advanced by 24 hours or more, with exceptions Force majeure - ANSWER-refers to natural disasters (such as floods, hurricanes, and other "acts of God") or acts of people (such as riots, strikes, and war) that prevent suppliers and subcontractors from meeting their obligations. In the legislation, the term is used to remove liability if some unexpected or unavoidable event prevents registrants or suppliers from meeting their obligations to a client or travel agent the scheduled departure of any transportation is delayed or advanced by 24 hours or more - unless the change is the result of: - ANSWER-mechanical problems, a strike or lock-out, safety considerations, a force majeure, weather conditions Registrants must create a file, documenting their actions, if a change or situation arises that might affect a client's decision to purchase the original travel service. The file must include details, in writing, of the: - ANSWER-information communicated to the customer; date on which the information was communicated to the customer; communication method used; and choice the customer made. Section 39 of the Regulation - ANSWER-Often, the most important factor in determining whether a consumer enjoys a travel experience is the quality of accommodation. The legislation therefore aims to ensure (as far as it is reasonable to do so) that clients receive the accommodation they paid for. Registrants who acquire rights to accommodation for the pur-pose of selling it to a customer are required to : - ANSWER-take reasonable measures to ensure that the accommodation the customer finds on arrival is in the same condition as described or presented before being purchased. If the registrant learn that the accommodation is not in the same condition as described during the sales process, The customer or customer's travel agent must be notified of the fact and offered: - ANSWER-a full and immediate refund (including all fees, levies, service charges, surcharges, taxes, and other charges) or comparable alternative travel services that are acceptable to the customer If the registrant learn that the accommodation is not in the same condition as described during the sales process, and If the customer purchased the accommodation as part of a package, the refund or alternative services applies to the: - ANSWER-whole package If the registrant learn that the accommodation is not in the same condition as described during the sales process, and If the purchased accommodation is not part of a package, the refund or alternative service applies to - ANSWER-the accommoda-tion only. Section 41 of the Regulation - ANSWER-If a travel agent sells travel services and pays the travel wholesaler 21 days or more before the day of departure, the wholesaler must forward all tickets, vouchers, the itinerary, and other related documents to the travel agent at least 14 days before the customer's departure date (unless the agent or customer direct otherwise). Section 42 of the Regulation - ANSWER-After receiving all tickets, vouchers, the itinerary, and other related documents from the wholesaler or other person, the travel agent must ensure that all the information is correct before giving the ticket, voucher, itinerary, or other documents to the customer who purchased the travel services. Section 43 of the Regulation - ANSWER-Travel Wholesaler's Requirement to Provide Travel Services A travel wholesaler cannot refuse to provide travel services already purchased if: - ANSWER-the customer has paid a travel agent for the travel services; and the travel wholesaler has given tickets (or other documents related to the travel services) to the travel agent for distribu-tion to the customer. If a travel wholesaler cannot refuse to provide travel services, This provision applies even if the travel agent has not yet paid: - ANSWER-the travel wholesaler for the travel services. [Show Less]
TICO Module One 2023 Solved 100%
Purpose of the travel Industry compensation Fund - ANSWER-to protect consumers who purchase travel services from Ontario-registered retailers If travel ... [Show More] services cannot be provided because of the financial failure of a registrant or an airline or cruise line end supplier, then a consumer may be eligible to receive compensation from the Fund Travel Industry Compensation Fund Notes - ANSWER-"Compensation Fund" Consumers do not have to live in Ontario to be covered by the Fund. As long as consumers purchase travel services from an Ontario registered travel agency, they are protected by the Compensation Fund in the event that they do not receive their travel services as a result of the failure of an Ontario registered travel retailer, an Ontario registered travel wholesaler or an airline or cruise line TICO has the legal right to borrow money to supplement the Fund Compensation Fund is made up of - ANSWER-contributions made by registrants any money borrowed under this or an earlier Regulation recoveries of money paid from the Fund income earned on the money in the Fund A registrant is required to reimburse the Fund for any claims paid to the registrant's customers under the following circumstances - ANSWER-the registrant is bankrupt or insolvent or has ceased to carry on business the registrant purchased travel services on the customer's behalf, extending credit to the customer the customer paid the registrant for the travel services after the supplier of the travel services had become bankrupt or insolvent or ceased to carry on business Payments to Finance the Fund - ANSWER-travel agent or travel wholesaler must contribute to the Travel Industry Compensation Fund Contributions must be made twice a year (6-month interval), with each payment based on the company's gross sales in Ontario When registrants make payments to the Fund, each payment must be accompanied by a completed return that shows the registrant's sales in Ontario for the preceding fiscal half-year and the amount owing to TICO. This return must be certified for accuracy by the registrant or an authorized officer or partner of the registrant Eligibility to Make a claim - ANSWER-two possible types of claim on the Travel Industry Compensation Fund -Standard Claim -Trip Completion Expense Claim Standard Claim - ANSWER-for travel services that were paid for but not provided as a result of the failure of an Ontario-registered travel agent, an Ontario-registered travel wholesaler or an airline or cruise line A customer, a travel agent or a travel wholesaler may make a standard claim Trip Completion Expense Claim - ANSWER-for reasonable expenses incurred to complete a trip where a customer or another person has begun a trip that cannot be completed because travel services have not been provided as the result of the failure of a TICO registrant customer or a travel agent may make a trip completion expense claim TICO Board of Directors is responsible for - ANSWER-determining whether all or part of a claim is eligible for reimbursement deciding on the eligible amount of a claim Consumers (Standard Claims) - ANSWER-Consumers who have booked and paid for travel services through a registered travel agent may make a claim against the Fund consumer whose booking was not made through a registered travel agent is not eligible to make a claim. Before making a claim against the Fund, a consumer must first seek payment from any other person or company that may be legally obligated to reimburse or compensate them (insurance company/credit card company) consumers are eligible to make a claim only if no other party has reimbursed them Claims can only be made against the Fund for the non-provision of travel services for two reasons - ANSWER-the bankruptcy or insolvency of a registrant the failure of an airline or cruise line end supplier Travel agents (Standard Claims) - ANSWER-can make a claim on the Compensation Fund if the following requirements are met: - customer must have booked and paid for the travel services through an Ontario-registered travel agency - travel agent must have dealt with a registered travel wholesaler, an airline or cruise line in good faith and at arm's length - travel agent must have passed all or part of the customer's money to the travel wholesaler, airline, or cruise line - The travel agent has either: = refunded the customer (If the travel agent is still holding any of the customer's money, the travel agency is responsible for refunding that money to the customer) = provided alternative travel services for the customer because the original services were not provided because of a registrant or airline or cruise line failure (Condition does not apply if the travel agent has acquired the rights to the travel services for resale.) - It is clear that the customer would have an eligible claim against the Compensation Fund Travel Wholesalers (Standard Claims) - ANSWER-can make a claim on the Compensation Fund for money it has paid out to: -reimburse a customer for travel services paid for but not provided -provide the customer with travel services for which the travel wholesaler has not been paid by the travel agent Travel Wholesalers claim applies only if: - ANSWER-travel agent is a registrant travel wholesaler dealt with the travel agent in good faith and at arm's length travel agent failed to pass all or part of the customer's money to the travel wholesaler travel wholesaler has had no previous dealings with the travel agent in which the travel agent failed to pass the customer's money to the travel wholesaler (or defaulted in another way) travel wholesaler has taken reasonable measures to ensure that the travel agent is reliable and financially responsible travel agent received the customer's money and it is clear that the customer would otherwise have had a claim against the Fund amount of any reimbursement can apply only to the portion of the customer's money that the travel agent received but failed to pass on to the travel wholesaler Claims limit on the Compensation Fund - ANSWER-maximum refund is $5,000 per person maximum payable for claims for reimbursement or immediate departure in response to any single event or "major event" is $5 million, plus any money TICO can recover from third parties If all claims for an event exceed $5 million, TICO will *prorate the claims it receives *assess and divide the claims proportionately additional $2 million may be paid from the Fund for trip completion to assist travellers who are stranded in a destination. Trip completion includes payments directed by the Director for trip completion and claims for trip completion expenses approved by the Board. If $2 million is not enough to cover this cost, the Director may, with the Board's approval, call for additional funds to be used for "trip completion" Additional funds cannot exceed $5 million, will be deducted from the $5 million available to reimburse consumers for claims or to pay for "immediate departures" because of the event in question Payments for trip completion take precedence (first paid out) over other claims on the Fund Decision making for major events - ANSWER-Director has the power to decide whether or not an event is a major one In making that decision, they must consider: - nature of the events - number of claims arising/potentially arising from the event - need to protect the Fund [Show Less]
In representations is it required to show the price including GST/PST?No - ANSWER-No, the total amount to be paid for travel services A regulation in su... [Show More] pport of an Act describes... - ANSWER-How the rules will be enforced or applied A representation displayed on a billboard or bus board or any other medium with time or space limitation is NOT required to include? - ANSWER-Registrant's business name, address and registration number Contributions to the Compensation Fund by registrants must be made - ANSWER-Twice a year (at a six-month interval) 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? - ANSWER-June 1 (14 days before departure) Define Travel Agent: - ANSWER-A person who sells, to consumers, travel services provided by another person All newspaper advertisements must include the following information: - ANSWER-Business name, address, and TICO registration number According to the Travel Industry Act, 2002, a travel agent does NOT have to inform a client before booking... - ANSWER-That some days can be cloudy, even in a sun destination Sally Rosa purchases a package tour from ABC agency that includes a return business flight. The airline end supplier becomes bankrupt during Sally's trip and she is stranded at the destination. She purchases a business class flight home and then makes a claim on the Compensation Fund. Will her claim for reimbursement of the flight home be successful? - ANSWER-Yes, because the Fund will cover only the value of the unused portion of the original ticket T/F: The Fund will NOT reimburse travel agents for any commissions, any service charge owing on the travel services purchased by the customer, or travel services purchased through an Alberta travel agency - ANSWER-True The best description of Ontario's Travel Industry Act, 2002, is that it... - ANSWER-Sets down the rules under which travel retailers and travel wholesalers must operate in Ontario The phrase: "to promote a fair and informed marketplace where consumers can be confident in their travel purchases" is the: - ANSWER-Mission/vision statement of TICO Which is NOT a Force Majeure? - Floods - Hurricanes - Riots - Mechanical - ANSWER-Mechanical 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 done anything wrong in its brochure? - ANSWER-Yes, because the photograph does not accurately depict the current condition of the resort T/F: Mr. and Mrs. Smith are planning their dream golf vacation. The resort they wish to stay at is holding the Pebble Beach Open Golf Tournament during the week the couple wants to travel. The travel agent is obligated to inform the client of this fact - ANSWER-True A consumer selects a package tour from a travel wholesaler's brochure. The hotel included in the package is 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? - ANSWER-The travel wholesaler, which should have disclosed in its brochure information about construction or renovation of the property 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. What will TICO do? - ANSWER-Refuse the claim because the Compensation Fund does not cover service fees [Show Less]
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