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TICO Certification: Complaints, inspections and offences

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When is an officer or director guilty of an offence committed by a travel corporation?

Study reference: TICO study notes from the Travel Industry Act, 2002 and O. Reg. 26/05 (Oct 2026), Ch. 12 Enforcement — Act ss. 16–18, 22–23, 31–32; O. Reg. 26/05 s. 48

All 12 questions in this test

Every original question, with optional answers, explanations and official references. Open an answer to study, or take the test above for instant feedback.

  1. When is an officer or director guilty of an offence committed by a travel corporation?

    1. Only if they own more than half of the shares
    2. Never; only the corporation can be charged
    3. Only if they personally signed the false document
    4. If they failed to take reasonable care to prevent it
    Show answer and explanation

    Correct answer: If they failed to take reasonable care to prevent it

    An officer or director of a corporation is guilty of an offence if he or she fails to take reasonable care to prevent the corporation from committing an offence.

    Based on: Act s. 31(2); checked 2026-10-24

    Official reference ↗

  2. Which information about registrants must the registrar make available to the public?

    1. The commission rates each wholesaler pays each agent
    2. The home addresses of every employee of every agency
    3. Each registrant's annual financial statements and bank balances
    4. Names of those whose registration was revoked in the past two years
    Show answer and explanation

    Correct answer: Names of those whose registration was revoked in the past two years

    The registrar publishes registrants' names and status, conditions, business contact details, names of those revoked in the previous two years, registrants charged by TICO and false advertising orders; financial information is not published.

    Based on: O. Reg. 26/05 s. 48; checked 2026-10-24

    Official reference ↗

  3. Which step may the registrar take when handling a complaint?

    1. Publish the customer's name and complaint online
    2. Cancel the customer's trip and keep the deposit
    3. Mediate, warn in writing, or refer it to the discipline committee
    4. Order the registrant to pay the customer triple damages on the spot
    Show answer and explanation

    Correct answer: Mediate, warn in writing, or refer it to the discipline committee

    In handling complaints, the registrar may attempt to mediate or resolve them, give a written warning, refer the matter to the discipline committee, propose action against the registration, or take other action under the Act.

    Based on: Act s. 16(4); checked 2026-10-24

    Official reference ↗

  4. Which part of a home-based agent's premises may a TICO inspector NOT enter without more authority?

    1. The computer used for bookings
    2. The part used as a dwelling
    3. The business office area
    4. The place where records are kept
    Show answer and explanation

    Correct answer: The part used as a dwelling

    The registrar or a designate may enter and inspect business premises at any reasonable time, other than any part used as a dwelling, with free access to relevant money, documents, records and data systems.

    Based on: Act s. 17; checked 2026-10-24

    Official reference ↗

  5. What is the maximum penalty for an individual convicted of an offence under the Travel Industry Act?

    1. A $50,000 fine, up to two years less a day in jail, or both
    2. A $5,000 fine or 30 days in jail
    3. A $250,000 fine, with no jail term possible
    4. A $25,000 fine and a ten-year ban from all travel industry work
    Show answer and explanation

    Correct answer: A $50,000 fine, up to two years less a day in jail, or both

    An individual can be fined up to $50,000 and/or imprisoned for up to two years less a day; a corporation can be fined up to $250,000.

    Based on: Act s. 31(3); checked 2026-10-24

    Official reference ↗

  6. A registrant receives a written request for information about a complaint. When must it reply?

    1. Only if the customer consents
    2. Within one year
    3. As soon as practicable
    4. Only if a court orders it
    Show answer and explanation

    Correct answer: As soon as practicable

    A registrant that receives a written request for information about a complaint must provide the information as soon as practicable; the request indicates the nature of the complaint.

    Based on: Act s. 16(3); checked 2026-10-24

    Official reference ↗

  7. When the statutory grounds are met, which protective measures are available concerning a registrant’s business or funds?

    1. Order them frozen, or apply to court for a receiver and manager
    2. Transfer them to the registrant's largest competitor
    3. Nothing, since only the customers can act in court
    4. Seize and sell them at once without any order or notice
    Show answer and explanation

    Correct answer: Order them frozen, or apply to court for a receiver and manager

    Sections 22 and 23 provide specified grounds and procedures for a court-appointed receiver/manager and a director’s freeze order. These are statutory protective measures, not an unrestricted power to seize and sell assets whenever a business appears financially weak.

    Based on: Act ss. 22–23; checked 2026-10-24

    Official reference ↗

  8. What is the maximum fine for a corporation convicted under the Travel Industry Act?

    1. $250,000
    2. $50,000
    3. $100,000
    4. $1 million
    Show answer and explanation

    Correct answer: $250,000

    A corporation convicted of an offence under the Act is liable to a fine of not more than $250,000.

    Based on: Act s. 31(3); checked 2026-10-24

    Official reference ↗

  9. Within what time must a prosecution under the Travel Industry Act be started?

    1. Two years after the director first knew the facts
    2. Six months after the customer's trip
    3. Five years after the booking was made
    4. There is no time limit at all for these prosecutions
    Show answer and explanation

    Correct answer: Two years after the director first knew the facts

    No proceeding may be commenced more than two years after the facts on which it is based first came to the knowledge of the director.

    Based on: Act s. 31(4); checked 2026-10-24

    Official reference ↗

  10. When a registrant is convicted of an offence, what extra order may the court make?

    1. An order transferring its customers to TICO
    2. An order closing every agency in the same city
    3. An order to pay compensation or make restitution
    4. An order requiring a new TICO exam for all staff
    Show answer and explanation

    Correct answer: An order to pay compensation or make restitution

    In addition to any other penalty, the court that convicts a person may order them to pay compensation or make restitution.

    Based on: Act s. 32; checked 2026-10-24

    Official reference ↗

  11. Under Act section 18’s conditional disciplinary framework, what is the stated maximum fine, subject to any lower prescribed amount?

    1. $250,000
    2. $50,000
    3. $5,000
    4. $25,000
    Show answer and explanation

    Correct answer: $25,000

    Section 18 provides for a committee and a finding of non-compliance with a ministerial code before its orders apply. Its stated fine maximum is $25,000, or a lower prescribed amount. This question concerns the statutory framework; it does not claim that a particular current code, committee or proceeding has been established.

    Based on: Act s. 18; checked 2026-10-24

    Official reference ↗

  12. Which act is an offence under the Travel Industry Act?

    1. Charging a disclosed counselling fee before booking
    2. Recommending one resort over another to a customer
    3. Giving false information in an application for registration
    4. Selling a trip that includes a stop in the United States
    Show answer and explanation

    Correct answer: Giving false information in an application for registration

    Section 31 covers false application/return information and the specified failures to comply with the Act, regulations or requirements. It expressly separates section 18 disciplinary orders and a ministerial code of ethics from these offence provisions. A disclosed counselling fee is not an offence merely because it is charged.

    Based on: Act s. 31(1); checked 2026-10-24

    Official reference ↗

Complaints, inspections and offences: key rules to remember

Our summary of what the official handbook says on this topic, in our own words. Read it before or after the practice questions above, then check the original chapter. Read the official chapter ↗

Complaints

  • Complaint information: The registrar may ask any registrant for information about a complaint, stating its nature; a registrant receiving a written request must provide it as soon as practicable.
  • Complaint response: The registrar may mediate, give a written warning, refer the matter to the discipline committee, propose action against the registration or take other action under the Act.

Inspections

  • Inspection limits: The registrar or a designate may inspect at any reasonable time the business premises (not a dwelling part) to check compliance, deal with a complaint or confirm entitlement to registration, with free access to relevant money, valuables, documents and records and use of the registrant's data systems.

Discipline

  • Conditional discipline: Section 18 conditionally provides for a discipline committee, ministerial code and findings before the listed orders apply. Its fine ceiling is $25,000 or a lower prescribed amount. This describes a statutory framework, not proof that a specific current committee/code or proceeding has been established.

Receivers and freeze orders

  • Protective orders: Where the specified statutory grounds are met, the director can seek a court-appointed receiver/manager or issue the applicable freeze order. Sections 22–23 prescribe grounds and process; they do not confer an unrestricted seizure power.

Offences

  • Offences: Section 31 offences cover false information and specified statutory non-compliance. Section 18 disciplinary orders and a ministerial code are expressly distinguished from these offence provisions.
  • Directors care: Officers and directors commit an offence if they fail to take reasonable care to prevent the corporation's offence.
  • Maximum penalties: An individual can be fined up to $50,000 and/or jailed up to two years less a day; a corporation up to $250,000.
  • Prosecution time: Proceedings must start within two years after the director first knew the facts.
  • Restitution: On conviction a court may also order compensation or restitution.

Public information

  • Public information: The registrar publishes registrants' names (with monthly updates), registration status and conditions, business contact details, names of those revoked in the previous two years, registrants charged by TICO and false-advertising orders; financial information is not published and the list is not given out in bulk except by law or to law enforcement.

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