Question

While subject to the additional operating requirements of Section 34 of the Agent Reporting Agreement, the Agent must accomplish all of the following EXCEPT A. Provide a bond or letter of credit or Cash Security Deposit in an amount equal to its net cash remittances for a current 6-week period. B. Discontinue the issuance of ARC traffic documents in an electronic format. C. Surrender all ARC traffic documents (paper format) so that it retains no more than a one month supply at each of its locations. D. Have no instances of dishonored drafts, missing reports, or defaults for a minimum period of 24 months.

Answer 1

The operating requirements of the Agent Reporting Agreement are discussed, and three options are presented. Option D is the correct answer, stating that the Agent must have no instances of dishonored drafts, missing reports, or defaults for a minimum period of 24 months.

Step-by-step explanation:

The subject of this question is Business and it is a question that would typically be asked in College. The Agent Reporting Agreement is a contract between a travel agent and the Airlines Reporting Corporation (ARC), which is responsible for settling transactions between airlines and travel agencies. The question is asking about the operating requirements that an Agent must fulfill under Section 34, except for one particular requirement.

1. Option A: This requirement states that the Agent must provide a bond or letter of credit or Cash Security Deposit in an amount equal to its net cash remittances for a current 6-week period. This ensures that the Agent has enough funds to cover any financial obligations.
2. Option B: This option states that the Agent must discontinue the issuance of ARC traffic documents in an electronic format. This means that the Agent cannot issue electronic tickets or other electronic documents for transactions.
3. Option C: This option states that the Agent must surrender all ARC traffic documents (paper format) so that it retains no more than a one month supply at each of its locations. This requirement aims to prevent the accumulation of excessive paper documentation.
4. Option D: The correct answer to the question is Option D. This option states that the Agent must have no instances of dishonored drafts, missing reports, or defaults for a minimum period of 24 months. This requirement ensures that the Agent maintains a high level of professionalism and financial stability.

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