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Travel Tours Inc

Question 14

Multiple Choice

Travel Tours Inc. sells special holiday packages that are arranged by other small companies and individuals. Each time a holiday package is sold, Travel Tours adds a service charge to the quoted price. Travel Tours justifies these charges based on the fact that


A) competition sets the rates used to calculate the service charges.
B) they are agents for the various principals, and are simply getting their agreed upon expenses plus industry established commissions.
C) the charges are quantum meruit payments based on benefits to the purchaser.
D) reasonable payments to agents are a duty of the principal.
E) the government regulates the level of commissions in the tourism industry.

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