PRACTICE EXAM 200 QUESTIONS AND CORRECT

TICO EXAM -

PRACTICE EXAM 200 QUESTIONS AND CORRECT

DETAILED ANSWERS (VERIFIED ANSWERS)

|ALREADY GRADED A+

According to the Travel Industry Act, 2002, a travel retailer does NOT have to inform a customer 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 retailer

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

Sally Smith belongs to a travel program. She saves up her points for two years until she has enough for a vacation package at a sun destination. The travel wholesaler noted in the brochure that the trip was valued at $2,500.00. After Sally transfers the points to the travel wholesaler, the wholesaler declares bankruptcy.Sally files a claim on the Travel Industry Compensation Fund for $2,500.00.Would her claim be eligible for reimbursement?

a) Yes, because it is based on the stated value of the trip

b) No, because Sally did not actually pay money for the trip

c) Yes, because air points are commonly used and have a monetary value

d) No, because travel wholesalers are not covered by the Compensation Fund -

ANSWER- b) No, because Sally did not pay money for her trip

TICO lays charges after discovering that a man has been selling travel services without being a registrant or an employee of a registrant. 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 Public and Business Service Delivery 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- 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 of Public and Business Service Delivery

c) The TICO Board of Directors

d) The Premier of Ontario - ANSWER- c) The TICO board of Directors

A couple gives their travel counsellor a deposit for a package tour. They obtain a receipt from her that says, "Balance of $500.00 due on September 27, ." The counsellor has also added the comment, "As discussed, some charges are

nonrefundable." 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 counsellor has reminded the customers that

the non-refundable charges were discussed during the sale of the package tour c) Inadequate because, by law, the travel counsellor should have said, "As discussed on August 27, , some charges are not refundable."

d) Inadequate because, by law, the travel counsellor must identify charges that are

non-refundable - ANSWER- d) Inadequate because, by law, the travel counsellor must identify charges that are non-refundable

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- b)

Contributions from consumers

The administration of the Travel Industry Act, 2002 was delegated to TICO by the:

a) Federal government

b) Travel industry

c) Global Affairs Canada

d) Ontario provincial government - ANSWER- d) Ontario provincial government

Fatima, the travel counsellor, concludes the sale with the customers and tells them to go to Global Affairs Canada 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. Fatima's advice is:

a) Sufficient because a travel counsellor need only advise customers where to

find information on travel documentation

b) Insufficient because a travel counsellor must advise customers about the

specific travel documents needed

c) Sufficient because the customers chose the destination, so it is up to them to

research the details

d) Insufficient because the travel counsellor must provide the customers with a

website address if she does not have specific information about travel documentation on hand - ANSWER- b) Insufficient because a travel counsellor must advise customers about the specific travel documents needed

A consumer selects a package tour from a registrant's website. 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 registrant, who should have disclosed on its website information about

construction or renovation of the property

c) The consumer, who should have more thoroughly researched the hotel before

booking

d) The construction company, which should have offered all the guests a set of ear

plugs - ANSWER- b) The registrant, who should have disclosed on its website information about construction or renovation of the property

A registrant has been selling XYZ Resort since the resort opened in 1995. The registrant still uses a photograph of the resort from 1995 in the brochure to show off the location's beauty. In fact, the resort has NOT been upgraded or renovated since 1995 and has become run down and outdated. Has the registrant done anything wrong in its representation on its website?

a) No, as long as the registrant states on its website that the photograph was

taken in 1995

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 photographs should not be used in representations -

ANSWER- b) Yes, because the photograph does not accurately depict the current condition of the resort

TICO works with which three groups to carry out its mandate? a) Consumers, travel retailers, the federal government The phrase "to promote a fair and informed marketplace where consumers can be confident of their travel purchases" is the

• mission statement of the Ministry of Consumer Services
• mission statement of TICO
• vision statement of TICO
• purpose of the Travel Industry Act, 2002

b