Ryder System, Inc

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IN THE MATTER OF RYDER SYSTEM, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Doket C-2915. Complaint. Dec. 28. 1977 - Decision. Dec. 28, 1977 This consent order, among other things, requires a Miami, Fla. vocational training correspondence school to cease misrepresenting or failng to disclose pertinent facts regarding industry demand, government and industry requirements; job placement; and location of training sites. Respondent is required to provide enrollees with prescribed forms and disclosures relating to rights of cancellation and refund; and employment success of former graduates. Further, respondent is required to make restitution to those former students determined to be eligible, in the manner and form set forth in the order. Appearances For the Commission: Donald Williams. For the respondent: Richard J Wertheimer and M Jean Anderson, Arnold Porter, Washington, D. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Ryder System, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Ryder System, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its principal place of business located at 2701 South Bayshore Drive, in the city of Miami, State of Florida.

Respondent now, and for some time last past has been primarily engaged in the formulation, development, offering for sale, sale and distribution of courses of instruction purporting to prepare graduates thereof for entry-level employment as truck drivers, automobile mechanics, diesel mechanics, air conditioner mechanics and repairmen, refrigeration mechanics and repairmen, machinists, welders, heavy equipment operators, heavy equipment mechanics, body and Complaint 90 F.

fender repairmen, electronics technicians, computer technicians mechanical draftsmen and architectural draftsmen. PAR. 2. In the course and conduct of its business of offering for sale sale and distribution of courses of instruction, respondent through home-study branch facilities and resident training facilities which it owned, organized and operated, and by means of wholly-owned subsidiaries, has authorized individuals and entities to solicit and write enrollments in respondent's corporate title and under the trade names "Greer Technical Institute, Lincoln Technical Institute National Professional Truck Driver Training, Radio Television Technical School, Electronics Training Center" and Ryder Technical Institute.

Respondent, through its said home-study branch facilties and resident training facilties, places into operation and implements a sales program whereby members of the general public, by means of advertisements placed in broadcast and printed media of general circulation, and by means of brochures, pamphlets and other promotional literature disseminated through the United States mails or by means of other statements, representations, acts and practices as hereinafter set forth, are induced to sign contracts or enrollment agreements for a course of home-study and/or resident training of a stated length of time and for a stated tuition cost. Respondent arranges or assists in the arrangement of credit and deferred payment terms for the financing of said executed contracts, and accepts the proceeds thereof.

In the manner aforesaid, respondent dominates, controls, furnishes the means, instrumentalities, services and facilities for, and condones, approves, and accepts the pecuniary and other benefits flowing from the acts and practices hereinafter set forth of respondent' s home-study branch facilities and resident training facilities.

Alternatively, with respect to the acts and practices of respondent' s home-study branch facilities and resident training facilties hereinafter set forth, respondent knew or should have known of the said acts and practices and failed to exercise its control to curb the said acts and practices.

PAR. 3. In the course and conduct of its business, as aforesaid, respondent now causes, and for some time last past has caused, said aforementioned courses of instruction to be distributed from its places of business to said aforementioned home-study branch facilities and resident training facilties located in various States of the United States other than the state of origination of said courses. Respondent transmits and receives, and causes to be transmitted and RYDER SYSTEM, INC. 923 921 Complaint received, in the course of the sale of, distribution of and financing of its courses of instruction by said home-study branch facilities and resident training facilities among and between the several States of the United States, retail installment contracts, financial reports checks, monies or other commercial paper.

Respondent maintains, and at all times mentioned herein has maintained, a substantial course of trade in said courses of instruction in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of its aforesaid business, and to induce the purchase of its courses of instruction by members of the general public, respondent and its home-study branch facilities and resident training facilties have disseminated, or caused the dissemination of, via the United States' mail or other means, radio, television, newspaper, print media or other forms of advertising, or other means and instrumentalities which are furnished, approved, created or condoned by respondent. In conjunction therewith, respondent and its home-study branch facilities and resident training facilities and the salespersons of its home-study facilities and resident training facilties have made certain statements and representations respecting the existence of a substantial and continuing demand for graduates of respondent' s courses, the lack of cost of placement services offered, the employment security of persons employed in the trucking industry, the amount of time required to complete successfully respondent's tractor-trailer driver course, and the approval by the Veterans Administration of respondent' s schools or courses.

Typical of the statements and representations, but not all inclusive thereof, are the following:

Radio and Television Would you like to hear some good news for a change? You don t have to continue being worried about job layoffs and earning a living wage. As you know almost every major industry in the country is laying off people. Yet there is stil a shorte of trained tractor-trailer drivers. Drivers in the expanding trucking industry have above average earnings and job security. There are still good jobs waiting be filled by trained drivers. If you are 21 or over, in good health, and have a good driving record, NATIONAL PROFESSIONAL TRUCK DRIVER TRAlNING, A RYDER SCHOOL, can train you fot one of these jobs. Newspaper and Direct Mail Free job placement servce Complaint 90 F.

TRACTR-TRAILER STUDENTS NEEDED Men, you are 3 weeks or 8 weekends away from driving the big rigs. . local and over-the-road. Train full time or weekends. APPROVED FOR VETERANS TRAIN TO BECOME A TRACTOR TRAILER DIESEL DRIVER IN A FEW WEEKS EFFECTIVE PLACEMENT SERVICE Minimum Age 20 Years OUR drivers in constant demand BE A TRACTOR-TRAILER DRIVER. . . V A APPROVED "Vets & GJ' This School is V A Approved ATTENTION MEN TRAIN NOW TO OPERATE HEAVY EQUIPMENT DRAGLINE. BULLDOZER SHOVEL. FRONT END LOADER CLAM SHELL. ResidentGRADERTraining on the Big Equipment, High paying jobs in the construction industry will be available for trained men. Promotional Material Job Opponunities for the trained Tractor-Trailer Driver 00 new drivers needed through the J970' Expanding National Economy Decentralized Manufacturing Declining Railroad System Growing Interstate Highway Network JOB OPPORTUNITIES FOR OPERATING ENGINEERS 36% ANNUAL GROWTH IN U.s. THROUGH THE 70's.. 410 00 JOBS PROJECTED FOR 1980.

Federal Government's multibilion-dollar Interstate expressway program is but one example of massive use of materials and skilled men. Other Federal, State, RYDER SYSTEM, INC. 925 921 Complaint County and City programs, and private projects boost the need for trained Heavy Equipment Operators all across America.

Ryder Technical Institutes. . Teach skills to meet strongest job demand RYDER KNOWS THE TRUCKING INDUSTRY and what kinds of drivers are needed and hired. Ryder trains to place.

PAR. 5. By and through the use of the above-quoted statements and representations, and others of similar import and meaning, but not expressly set out herein, respondent and its home-study branch facilities and resident training facilties and the salespersons of the home-study branch facilties and the resident training facilities have represented, directly or by implication, that: 1. There is an urgent need or demand for all or most graduates of respondent' s tractor-trailer driver and heavy equipment operator courses in positions for which respondent trains such persons. 2. Respondent had a reasonable basis from which to conclude that:

(a) there was at the time such representations were made, or (b) would be at the time that persons then enrolling graduated, an urgent need or demand for all or most graduates of respondent' tractor-trailer driver and heavy equipment operator courses in positions for which respondent trains such persons. 3. All or substantially all graduates of respondent' s tractortrailer driver and heavy equipment operator courses are able, on graduation, to secure the positions for which respondent has trained them.

4. The placement assistance furnished by respondent is free. 5. Unlike a person employed in a non-trucking industry, a person employed in the trucking industry does not experience layoffs. 6. A purchaser wil complete respondent's tractor-trailer driver course and qualify for employment as a tractor-trailer driver within three weeks of beginning the course on a full-time basis or within eight weekends of beginning the course on a part-time basis. 7. Respondent's schools or courses are approved by the Veterans Administration.

PAR. 6. In truth and fact:

1. At the time it was so represented there was not an urgent need or demand for all or most graduates of respondent' s tractor-trailer Complaint 90 F.

driver and heavy equipment operator courses in positions for which respondent trains such persons.

2. Respondent had no reasonable basis from which to conclude that:

(a) there was at the time such representations were made, or (b) would be at the time that persons then enrolling graduated, an urgent need or demand for all or most graduates of respondent' tractor-trailer driver and heavy equipment operator courses in positions for which respondent trains such persons. 3. All or substantially all graduates of respondent's tractortrailer driver and heavy equipment operator courses are not able, on graduation, to secure the positions for which respondent has trained them.

4. The placement assistance furnished by respondent is not free, but, rather is included in the tuition cost of respondent' s courses. 5. As is true of a person employed in a non-trucking industry, a person employed in the trucking industry does experience layoffs. 6. A purchaser cannot complete respondent's tractor-trailer driver course and qualify for employment as a tractor-trailer driver within three weeks of beginning the course on a full-time basis or within eight weekends of beginning the course on a part-time basis. 7. Respondent's schools or courses are not approved by the Veterans Administration. Respondent's schools merely offer some courses that an appropriate state agency has approved as courses a veteran may attend and become eligible to receive veterans educational assistance benefits from the United States Government. Therefore, the statements and representations set forth in Paragraphs Four and Five hereof were, and are, false, misleading or deceptive acts or practices.

PAR. 7. Respondent, in offering for sale courses of instruction purporting to prepare graduates thereof for entry-level employment as tractor-trailer drivers and heavy equipment operators, failed to disclose in advertising or through the salespersons of its home-study facilties and resident training facilities the following information with respect to each school for each course offered: 1. The percentage of recent graduates who were able to obtain employment in the positions for which they were trained; 2. The employers that hired any such recent graduates; 3. The initial salary any such recent graduates received; and 4. The percentage of recent enrollees who have failed to complete their courses of instruction.

Knowledge of such facts would be an indication of the probability of RYDER SYSTEM, INC. 927 921 Complaint indicate thegraduating from respondent's courses and would possibility of securing future employment upon graduating and the nature of such employment. Thus, respondent has failed to disclose material facts which, if known to a consumer, would be likely to affect his or her consideration of whether or not to purchase such courses of instruction. Therefore, the aforesaid acts and practices were, and are, false, misleading, deceptive or unfair acts or practices. PAR. 8. Respondent, in offering for sale a tractor-trailer driver course, failed to disclose in a clear and conspicuous manner: (a) that the United States Department of Transportation has established certain requirements which must be met before a person may drive a tractor-trailer;

(b) that various states maintain certain requirements that must be met before a person is licensed as a tractor-trailer driver; (c) that many employers of tractor-trailer drivers wil not accept an applicant for a position as a tractor-trailer driver unless he or she is at least twenty five years of age and has previous experience driving tractor-trailers;

(d) that in order to attain a position as a tractor-trailer driver, a person may be required to join a union.

Knowledge of such facts would aid a consumer in determining the likelihood that he or she could meet governmental standards for tractor-trailer drivers and would be an indication ofthe possibility of securing future employment upon graduating from said course and the nature of such employment. Thus, respondent has failed to disclose material facts which, if known to a consumer, would be likely to affect his or her consideration of whether or not to purchase said course of instruction. Therefore, the aforesaid acts and practices were and are, false, misleading, deceptive or unfair acts or practices. PAR. .9. Respondent, in offering for sale a tractor-trailer driver course, failed to disclose in a clear and conspicuous manner the location of the residential training center at which enrollees who have read, viewed or heard a given advertisement will receive their resident training. Knowledge of such facts would be an indication of the full cost and time requirements of enrollng in said course. Thus, respondent has failed to disclose material facts which, if known to a consumer, would be likely to affect his or her consideration of whether or not to purchase said course of instruction. Therefore, the aforesaid acts and practices were, and are, false, misleading, deceptive or unfair acts or practices.

PAR. 10. Respondent, in offering for sale a tractor-trailer driver course, failed to disclose, in a clear and conspicuous manner, the Complaint 90 F.

minimum amount of time which would be spent driving tractortrailers and the minimum number of miles which tractor-trailers would be driven by each enrollee who graduates from said course. Knowledge of such facts would be an indication of the potential usefulness of the course in obtaining future employment. Thus, respondent has failed to disclose material facts which, if known to a consumer, would be likely to affect his or her consideration of whether or not to purchase said course of instruction. Therefore, the aforesaid acts and practices were, and are, false, misleading, deceptive or unfair acts or practices.

PAR. 11.

(a) Respondent, as aforesaid, has been and is now failng to disclose material facts while using other false, misleading, deceptive or unfair acts or practices, to induce persons to pay over to respondent substantial sums of money to purchase courses of instruction whose value to the said persons for future employment in the jobs for which training was offered was virtually worthless. Respondent has received the said sums and has failed to offer to refund and refused to refund such money to such purchasers of its courses. The use by respondent of the aforesaid practices and its continued retention of the said sums, as aforesaid, is an unfair act or practice. (b) In the alternative and separate from subparagraph (a) above, respondent, who is in substantial competition in commerce with corporations, firms and individuals engaged in the sale of courses of vocational instruction, has been and is now, as aforesaid, failing to disclose material facts while using false, misleading, deceptive or unfair acts or practices, to induce persons to pay over to respondent substantial sums of money to purchase courses of instruction. The effect of using these aforesaid acts and practices to secure substantial sums of money is or may be to substantially hinder lessen, restrain or prevent competition between the respondent and the aforesaid competitors.

PAR. 12. By and through the use of the aforesaid acts and practices, respondent places in the hands of others the means and instrumentalities by and through which it may mislead and deceive the public in the manner and as to the things hereinabove alleged. PAR. 13. In the course and conduct of their business, and at all times mentioned herein, respondent has been and now is in substantial competition in commerce with corporations, firms and individuals engaged in the sale of courses of instruction covering the same or similiar subjects.

PAR. 14. The use by respondent of the aforesaid false, misleading, unfair or deceptive statements, representations, acts and practices RYDER SYSTEM, INC. 929 921 Decision and Order has had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were, and are, true, and to induce a substantial number thereof to purchase respondent' courses by reason of said erroneous and mistaken belief. PAR. 15. The aforesaid acts and practices of respondent, as herein alleged, were and are all to the prejudice and injury of the public and of respondent's competitors and constituted, and now constitute, unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce in violation of Section 5 of the Federal Trade Commission Act.

DECISION AND ORDER The Commission having issued its complaint charging the respondent named in the caption hereto with violation of the Federal Trade Commission Act, and the respondent having been served with a copy of the complaint the Commission issued, together with a proposed form of order; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint issued, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having considered the agreement and having provisionally accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of sixty (60) days, and having duly considered the comments fied thereafter pursuant to Section 2. 34 of its Rules, now in further conformity with the procedure prescribed in Section 2.34 of its Rules the Commission hereby issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Ryder System, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its principal office and place of business located at 2701 South Bayshore Drive, Miami, Florida.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

Decision and Order 90 F. ORDER It is ordered, That respondent Ryder System, Inc., a corporation and respondent's agents, representatives, employees, successors and assigns, directly or through any corporation, subsidiary, division, franchisee or other device, in connection with the creation, advertising, promotion, offering for sale, or distribution to individual students of home study courses or combination home study-resident training courses or tractor-trailer drive or heavy equipment operator resident courses of study in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, as amended, do forthwith cease and desist from:

1. Representing, orally, visually, or in writing, directly or by implication, that:

(a) The placement assistance furnished by respondent is free; or misrepresenting, orally, visually, or in writing, the cost of any placement assistance or service.

(b) Unlike a person employed in a non-trucking industry, a person employed in the trucking industry does not experience layoffs; or misrepresenting, orally, visually, or in writing, the conditions of employment in the trucking industry or in any other industry. (c) A purchaser wil complete respondent' s entire combination home study-resident training tractor-trailer driver course and qualify for employment as a tractor-trailer driver within three weeks of beginning the course; or misrepresenting, orally, visually, or in writing, the length of time required to complete any course of instruction offered by respondent which is subject to part I of this order.

(d) Respondent's schools or courses are "approved" by the Veterans Administration; or misrepresenting, orally, visually, or in writing, the extent or nature of any approval or other form of government action taken with respect to any school or course of instruction.

(e)(i) There is a substantial demand, or a demand of any size or proportion, for persons completing any course offered by respondent which is subject to part I of this order (ii) or otherwise representing that opportunities for employment or opportunities of any type or number are available to such persons, except in the form as hereinafter provided in part I, paragraphs 6(a)(ii)a. and 6(b)(ii)a. of this order, provided, however, that respondent shall cease and desist making such representations with respect to any such new school location or such new course of RYDER SYSTEM, INC. 931 921 Decision and Order instruction unless the respondent in each and every instance shall have in good faith conducted a statistically valid survey which establishes the validity of any such representations at all times when the representations are made, and have disclosed in immediate and conspicuous conjunction with any such representation, that: All representations of potential employment demand or opportunities for graduates of this school (course) are estimates. This school (course) has not been in operation (offered) long enough to indicate what actual employment may result upon graduation.

(iii) after the passage of the ten-month period to be determined pursuant to part I, paragraphs 6(a)(ii)e. and 6(b)(ii)d. of this order, and until two years after establishment of a new school location by respondent in any metropolitan area or state where it did not previously operate a school, and after the introduction by respondent of any new course of instruction subject to part I of this order, at any school or location, respondent shall:

a. make any such representations in the form and manner provided in part I, paragraphs 6(a)(ii)a. and 6(b)(ii)a. of this order, andb. disclose in immediate and conspicuous conjunction with any such representation, that:

This school (course) has been in operation (offered) since (insert date on which school or course commenced).

2. Using orally, in writing, or in any other manner at any time statistical data or numerical estimates, derived from any source whatsoever, other than the statistical data or numerical estimates referred to in part I, paragraph I(e) of this order, respecting present or future occupational demand or the growth of employment or the salaries earned in any field, or misrepresenting in any manner the meaning, application, relevancy or import of any statistical data or statistical projections of any type from any source. 3. Failing to keep adequate records which may be inspected by Commission staff members upon reasonable notice, and which shall be maintained by respondent for so long as the material covered by part I, paragraphs 3(a) or 3(b) of this order is disseminated or approved for dissemination, or a statement covered by paragraphs 3(a) or 3(b) of this order is made by said respondent, and for a further period of five (5) years after said respondent' s last dissemination or approval of dissemination of such material or such statement: (a) Which disclose the facts upon which any statement of demand placement percentages or claims, or other representations of the type described in part I, paragraphs I(e), 6(a)(ii)a., and 6(b)(ii)a. through 6(a)(ii)c. of this order are based; and Decision and Order 90 F. (b) From which the validity of any statements of demand, placement percentages or claims, or other representations of the type described in part I, paragraphs l(e), 6(a)(ii)a. through 6(a)(ii)c. and 6(b )(ii)a. through 6(b )(ii)c. of this order was determined; and (c) Which reflect the delivery and date of delivery of the data described in part I, paragraphs 6(a), 6(b)' and 8 of this order. (d) Which reflect the delivery of the refunds described in part I, paragraph 7 of this order.

4. Enrollng any person in any tractor-trailer driver course which is subject to part I of this order before delivering to that person a notice concerning United States Department of Transportation requirements in the language, manner and form shown in Appendix A to this order.

5. Enrollng any person in any tractor-trailer driver course which is subject to part I of this order before delivering to that person a list of respondent's resident training centers in the language, manner and form shown in Appendix A to this order. 6. (a) Failing to deliver to each person who shall contract with respondent for the purchase of any tractor-trailer driver course subject to part I of this order, a written notice, printed in at least 10point type which shall disclose in the form provided in Appendix B the following information and none other:

(i) The title "IMPORTANT INFORMATION" printed in boldface type across the top of the form.

(ii) Paragraphs reciting the following information to be computed in the language, manner and form set forth below for the applicable base period as hereinafter defined in part I, paragraph 6(a)(ii)e. of this order:

a. For any tractor-trailer driver course subject to part I of this order offered by respondent for each school, location or facility at which respondent offers said course of instruction: The dates of the "base period" as computed in part I, paragraph 6(a)(ii)e. of this order; the total number of students who graduated during such base period; the total number of students who responded to respondent' s inquiry concerning employment status in the three months following graduation; the numbers and percentages of such responding graduates who responded that they had attained employment as tractor-trailer drivers, with such information accompanied by the following disclosures:

i. Requirements for licensing tractor-trailer drivers vary from state to state. Many states require license applicants to take road tests on the types of vehicles they expect to drive, and the applicants are required, at their own expense, to furnish the vehicles needed to take the road tests. In addition to the usual viual RYDER SYSTEM, INC. 933 921 Decision and Order tests and written tests which states require, some states also require applicants to tae speializ written tests relating to the types of vehicles they expect to drive. You should determine the requirements for licensing tractor-trailer drivers in the state in which you intend to seek a license. ii. You should also obtain information concerng employment in the types of trucking jobs in which you might like to work after graduation. Some employers will hire drivers who are under the age of twenty-five or who lack previous tractor-trailer experience and some employers wil not. Some tractor-trailer jobs require union membership and some jobs do not. You should explore the availability of the particular type of job in which you are personally interested. b. As to the same graduates who respond to respondent's inquiry concerning employment and are used to compute the placement statistics in part I, paragraph 6(a)(ii)a. of this order, separately, for each school, location or facilty at which respondent offers said course, a list of all firms or employers which are known to have hired any of such graduates during the base period; and the number of such graduates hired by each firm or employer in the position of a tractor-trailer driver.

c. As to the same graduates used to compute part I, paragraph 6(a)(ii)a. of this order, the hourly starting wages and incomes of said graduates who are known to have attained full-time employment as tractor-trailer drivers. Such wages or incomes shall be stated in consecutive categories of one dollar amounts, in the form described in Appendix B (e. $3.00 to $3. , $4. 00 to $4.99 . . .) or, if such hourly wages and incomes are not known, the monthly wages and incomes which are reported to respondent.

d. In compilng the foregoing information, respondent shall not include any such graduates who respondent knows have not retained such positions for more than one month from the initial date of employment. Respondent may use information supplied by graduates, employers, or other sources and shall not be required to obtain such information independently.

e. "Base Period" shall mean a six (6) month period beginning ten (10) months before and ending four (4) months before the date on which respondent must begin to disseminate the necessary statistics with respect to the base period. There shall be two base periods each year, one beginning on January 1 and concluding on June 30; the other shall begin on July I and conclude on December 31. There shall be a four (4) month period immediately following the close of a base period during which respondent shall gather the necessary statistics with respect to said base period. These statistics wil relate to those graduates who successfully completed the particular course of instruction during the base period and who Decision and Order 90 F. reported employment during the base period. Respondent may not include in the computation of the statistics for the base period any persons who graduated during the months after the base period; such persons will be included in statistics for the base period during which they graduate.

On the first day of the fifth month following the close of each base period, respondent shall begin to distribute statistics relating to the last completed base period. Respondent shall continue to distribute said statistics until the first day of the fifth month following completion of the next base period.

For any six-month period during which respondent has no graduates for a particular course of instruction, respondent may continue to distribute the statistics with respect to the prior base period for said course of instruction until such time as respondent has graduates of said course of instruction and has had four (4) months in which to gather statistics with respect to those graduates. (b) Failing to deliver to each person who shall contract with respondent for the purchase of any course of instruction which is subject to part I of this order, other than a course described in part I paragraph 6(a) of this order, a written notice printed in at least 10point type which shall disclose in substantially the same form as provided in Appendix B the following information and none other: (i) The title "IMPORTANT INFORMATION" printed in boldface type across the top of the form.

(ii) Paragraphs reciting the following information to be computed in the manner set forth below for the applicable base period defined in part I, paragraph 6(a)(ii)e. of this order: a. For each such course of instruction offered by respondent for each school, location or facility at which respondent offers said course of instruction:

The dates of the "base period" as computed in part I, paragraph 6(a)(ii)e. of this order; the total number of students who graduated during such base period; the total number of students who responded to respondent' s inquiry concerning employment status in the three months following graduation; and the numbers and percentages of such responding graduates who advised respondent that they had attained employment in the fields for which such graduates were trained. Such information must include an accurate description of each position in which such graduates attained employment. b. As to the same graduates used to compute the placement and employment statistics in part I, paragraph 6(b)(ii)a. of this order, a list of all employers which are known to have hired any such g., RYDER SYSTEM, INC. 935 921 Decision and Order graduates during the base period, the number of such graduates hired by each firm or employer and the positions in which said graduates were hired.

c. As to the same graduates used to compute the statistics in part , paragaph 6(b)(ii)a. of this order, the hourly starting wages incomes of said graduates. Such wages or incomes shall be classified by number of graduates attaining employment in each position described in part I, paragraph 6(b )(ii) of this order and shall be stated in consecutive categories of one dollar amounts, in the form described in Appendix B (e. $3. 00 to $3. , $4. 00 to $4.99. . .) or, if such hourly wages and incomes are not known, the monthly wages and incomes which are reported to respondent. d. In preparing the information required in part I, paragraphs 6(a)(ii)a. through c. of this order, respondent shall follow the instructions set forth in part I, paragraphs 6(a)(ii)d. through e. of this order.

7. Contracting for any sale of any course of instruction which is subject to part I of this order in the form of a sales contract or other agreement which shall become binding prior to midnight of the third business day after receipt by a customer of the form of notice provided in part I, paragraph 8 of this order. Upon cancellation of any said sales contract or other agreement as provided for in part I paragraph 8 of this order, respondent is obligated to refund within ten (10) business days to any person exercising the cancellation right all the monies paid or remitted up to the notice of cancellation. 8. Failing to deliver to each person who shall contract with respondent for the purchase of any course of instruction which is subject to part I of this order, a one-page form (hereinafter cancellation form ) in duplicate, that contains the following unsigned statement printed in boldface type of at least ten (10) points:

IMPORTANT NOTICE TO THE PURCHASER THE ENROLLMENT CONTRACT THAT YOU SIGNED WITH (NAME OF SCHOOL) ON (DATE) TO ENROLL IN (NAME OF COURSE) MAY BE CANCELLED BY YOU, FOR ANY REASON, IF YOU SIGN THIS STATE- MENT AND MAIL IT TO THE ABOVE NAMED SCHOOL WITHIN THREE (3) DAYS FROM THE TIME THAT YOU RECEIVED THIS STATEMENT. YOU ARE THUS FREE TO CANCEL YOUR ENROLLMENT AND RECEIVE A FULL REFUND OF ANY MONIES YOU HAVE PAID TO THE SCHOOL. IF YOU DO W A."T TO CANCEL, YOU SHOULD SIGN YOUR NAME BELOW Decision and Order 90 F. AND MAIL THIS STATEMENT TO THE SCHOOL WITHIN THREE (3) DAYS. KEEP THE DUPLICATE COPY FOR YOUR OWN RECORDS. DATE SIGNATURE 9. The cancellation form shall not contain any information or representations other than the information specified in part I, paragraph 8 of this order, and the cancellation form shall be delivered along with the data required by part I, paragraph 6 of this order. The cancellation form and said data shall be delivered by respondent no later than the next business day after the person shall have contracted for the purchase of any course of instruction which is subject to part I of this order. During such period provided for in part I, paragraph 8 of this order respondent shall not initiate contact with such person other than that required by this paragraph. 10. Making any representation of any kind whatsoever in connection with the advertising, promoting, offering for sale, sale or distribution of any course of study subject to part I of this order, for which respondent has no reasonable basis prior to the making or dissemination thereof.

11. In the event that the Commission promulgates a trade regulation rule on advertising, disclosure, cooling-off, or refund requirements for proprietary vocational and home study schools, or any trade regulation rule providing for the disclosure of employment or similar data to prospective students, then part I, paragraphs l(e), , 3, 6, 7, 8 and 9 of this order shall be superseded thereby, and such trade regulation rule shall completely supersede and replace said paragraphs and such trade regulation rule shall become part of this order.

I. It is further ordered, That:

(a) Respondent deliver a copy of this decision and order to each of its present and future employees, salesmen, agents, solicitors, independent contractors or to any other person or entity which promotes, offers for sale, sells or distributes any course of instruction included within the scope of this order.

(b) Respondent provide each person or entity so described in part , paragraph 1 (a) of this order with a form returnable to the respondent clearly stating his or her intention to be bound by and to conform his or her business practices to the requirements of this RYDER SYSTEM, INC. 937 921 Decision and Order order; retain said statement during the period said person or entity is so engaged and for a period of five (5) years thereafter; and make said statement available to the Commission s stafffor inspection and copying upon request.

(c) Respondent inform each person or entity so described in part II, paragraph lea) of this order that the respondent wil not use or engage or wil terminate the use or engagement of any such party, unless such party agrees to and does fie notice with the respondent that he or she wil be bound by the provisions contained in this order. (d) If such party as described in part II, paragraph l(a) of this order will not agree to so fie the notice set forth in part II, paragraph l(b) of this order with the respondent and be bound by the provisions of the order, the respondent shall not use or engage or continue the use or engagement of, such party to promote, offer for sale, sell or distribute any course of instruction included in this order.

(e) Respondent herein inform the person or entities described in part II, paragraph l(a) of this order that the respondent is obligated by this order to discontinue dealing with or to terminate the use or engagement of persons or entities who continue on their own the acts or practices prohibited by this order.

(I) Respondent herein discontinue dealing with or terminate the use or engagement of any person or entity described in part II paragraph l(a) of this order, who continues on his or her own any act or practice prohibited by this order.

2. It is further ordered, That respondent shall forthwith distribute a copy of this order to each of its divisions or subsidiary corporations which is involved in the advertising, promotion or sale of any course of instruction included within the scope of this order. It is further ordered, That:

1. Within thirty (30) days after the date this order is served on respondent (hereinafter "date of service ) respondent shall employ an independent contractor acceptable to the Compliance Division of the Bureau of Consumer Protection of the Commission (hereinafter Compliance Division 2. Within ninety (90) days after the date of service, respondent shall compile a list from records in respondent' s possession, custody, or control and from information which may be transmitted to respondent by the Commission or by others within said number of days. That list shall state the following with respect to each person who completed the resident training portion of respondent' s tractor- Decision and Order 90 F. trailer driver course between January I, 1970 and December 31 1972, and each person who completed the resident training portion of respondent' s heavy equipment operator course between January I, 1971 and December 31, 1973 (hereinafter "the graduates (a) Name; and (b) Last known address; and (c) Course and date of completion; and (d) Total tuition paid by or for such graduate to respondent; and (e) The other names and addresses that appear in the student or placement fie of respondent relating to each graduate. 3. Within ninety (90) days after the date of service, respondent shall give to the independent contractor the list described in part II, paragraph 2 of this order.

4. On the one hundred and twentieth (l20th) day after the date of service, the independent contractor shall deposit in the United States mail, first class postage prepaid, an envelope addressed to each graduate at his or her last known address. Each envelope shall bear the independent contractor s return address and shall contain: (a) A copy of the letter and the appropriate affidavit that appear in the language, manner, and form shown in Appendices C, D, and E; and (b) A first class postage prepaid envelope addressed to the independent contractor.

5. If any envelope mailed to a graduate pursuant to part III, paragraph 4 of this order is returned to the independent contractor by the United States Postal Servce, then, within five (5) business days after each such envelope is returned, the independent contractor shall deposit in the United States mail, first class postage prepaid, an envelope addressed to each name and address described in part II, paragraph 2(e) of this order. Each envelope shall bear the independent contractor s return address and shall contain: (a) A letter in the language, manner, and form shown in Appendix N;and (b) A first class postage prepaid envelope addressed to the independent contractor.

6. (a) If, within fifty (50) days after the date set forth in part II paragraph 4 of this order, the independent contractor receives from any source a new address or addresses for graduates whose names appear on the list described in part III, paragraph 2 of this order, then, within five (5) business days after receiving such new addresses, the independent contractor shall deposit in the United States mail, first class postage prepaid, envelopes which shall be addressed to the graduates at the new address or addresses, bear the RYDER SYSTEM, INC. 939 921 Decision and Order independent contractor s return address, and contain the items described in part II, paragraphs 4(a) and 4(b) of this order. (50) days after the date set forth in part II (b) If, within fity paragraph 4 of this order, the independent contractor receives requests from anyone for a copy of Appendices C, D, E, or for information necessary for the implementation of part III of this order, then, within five (5) business days after receiving such requests, the independent contractor shall deposit in the United States mail, first class postage prepaid, envelopes which shall be addressed to the persons making the requests, bear the independent contractor s return address, and contain the items described in part , paragraphs 4(a) and 4(b) of this order.

7. The independent contractor shall keep safe all executed copies of Appendices D and E (hereinafter "claimant affdavits ) which are delivered to him.

8. Within two hundred (200) days after the date of service, the independent contractor shall transmit to respondent all claimant affdavits in his possession, custody, or control, and shall maintain a record of the names of claimants whose affdavits are transmitted to respondent, the dates such transfers occur, and the dates such claimant affdavits were received by the independent contractor. 9. Respondent's payment obligations pursuant to part III of this order shall be limited to those graduates who meet all of the conditions described in part II, subparagraphs (a) through (g) of paragraph 9 of this order, that is, persons: (a) Who completed the resident training portion of respondent' tractor-trailer course between January 1, 1970 and December 31 1972, or who completed the resident training portion of respondent' heavy equipment operator course between January 1, 1971 and December 31, 1973; and (b) Whose tuition was not paid for in full by his employer or a governmental agency other than the United States Veterans Administration or who had an obligation to repay all or part of the tuition paid in full by said employer or governmental agency; and (c) Who, (i) in the case of a tractor-trailer course graduate, failed to obtain employment at any time after graduation in a target job, that , as a truck driver, instructor of truck driving, or manager or safety director or foreman of persons engaged in truck driving; or, (ii) in the case of a heavy equipment course graduate, failed to obtain employment for a reasonable period of time at any time after graduation in a target job, that is, as a heavy equipment operator or instructor of heavy equipment operation, or manager or safety director or foreman of heavy equipment operators, but who either Decision and Order 90 F. made a reasonably diligent search for employment in their respective target jobs, or who failed to make such a search for excusable reasons; and (d) Who have returned to the independent contractor within seventy-five (75) days after the date set forth in part II, paragraph 4 of this order, a claimant affdavit; and (e) Who, if sent one or more of the letters referred to in part III, paragraph 10(b)(ii) of this order, have returned to the independent contractor by the date set forth in part II, paragraph IO(e) of this order, their responses to such letters; and (I) Whose properly signed and notarized claimant affdavits, together with responses to any such letters referred to in part III, paragraph 10(b)(ii) of this order, contain suffcient information to establish that they are persons described by part II, paragraphs 9(a) through 9(c) of this order; and (g) Who agree in writing that, in consideration of the monies received pursuant to part III of this order, he or she releases respondent from any and all further claims, known and unknown, with respect to or arising from tuition for respondent' s course or courses.

10. (a) Within two hundred and thirty (230) days after the date of service, respondent shall identify each claimant affdavit which respondent asserts to be so incomplete, ambiguous, or internally inconsistent that respondent cannot fairly decide whether the person submitting such a claimant affidavit is a person described in part III, paragraphs 9(a) through 9(d) of this order. (b) With respect to each person submitting such an incomplete ambiguous, or internally inconsistent claimant affdavit, respondent shall, on the two hundred and thirtieth (230th) day after the date of service, deposit in the United States mail, first class postage prepaid, an envelope which shall bear the return address of the independent contractor and which shall contain:

(i) That person' s claimant affdavit; and (ii) One or more appropriate form letters in the language, manner and form shown in Appendices F, G, or H, or a specially prepared letter, if none of the form letters is appropriate, requesting that the necessary additional or clarifying information be added to or incorporated in the claimant affdavit; and (iii) A first class postage prepaid envelope addressed to the independent contractor.

(c) Before mailing a specially prepared letter of the sort described in part II, paragraph 10(b)(ii) of this order, respondent shall first send a copy of the letter and a copy of relevant portions of the RYDER SYSTEM, INC. 941 921 Decision and Order claimant affdavit to the Compliance Division. The Compliance Division shall have seven (7) days, from the time respondent deposits the copy of the letter in the United States mail addressed to the Compliance Division, in which to notify respondent that such a letter is acceptable or unacceptable. If, within those seven (7) days, respondent receives actual written or oral notice from the Compliance Division that a letter is not acceptable, then respondent shall not mail the letter, and respondent and the Compliance Division shall negotiate the wording of the letter. Within one (1) business day after respondent and the Compliance Division reach agreement, a letter acceptable to the Compliance Division shall be mailed. If, within those seven (7) days, the Compliance Division either notifies respondent that a letter is acceptable, or fails to notify respondent that a letter is acceptable or unacceptable, then, on the next business day, respondent shall mail the letter.

(d) Each letter referred to in part II, paragraph 10(b)(ii) of this order shall record the addressee s name, address, and telephone number. Respondent shall retain a copy of each letter. (e) The deadline for receipt by the independent contractor of responses to the letters described in part II, paragraph 10(b)(ii) of this order shall be midnight on the thirty-fifth (35th) day after the date the letters described in part II, paragraph 10(b)(ii) are mailed. Persons whose responses are received after that time shall not be eligible for any payment under part III of this order. 11. Within two hundred and ninety-five (295) days after the date of service, respondent shall make an initial determination of: (a) Those persons who are described in part III, paragraphs 9(a) through 9(1) of this order; and (b) Those persons who have submitted claimant affdavits which show that they are not persons described in part III, paragraphs 9(a) through 9(1) of this order; and (c) Those persons who respondent has reason to believe are not persons described in part II, paragraphs 9(a) through 9(1) of this order, .notwithstanding their claimant affdavits. 12. Within three hundred and five (305) days after the date of service, respondent shall deliver to, or make available, at the option of the Compliance Division, and the Compliance Division shall commence to review:

(a) The initial determination made by respondent pursuant to part II, paragraph II ofthis order; and (b) All claimant affidavits and any related documents or information which respondent used to make its initial determination. 13. Within three hundred and fifty (350) days after the date of Decision and Order 90 F. service, the Compliance Division shall complete its review of the materials described in part III, paragraph 12 of this order. Immediately thereafter, the Compliance Division and respondent shall attempt to resolve any differences concerning the categorization of claimant affdavits and any other questions arising in connection with respondent's performance of part III of this order. 14. Within three hundred and eighty (380) days after the date of servce, respondent shall make a final determination of: (a) Those persons who both the Compliance Division and respondent agree are described by part II, paragraphs 9(a) through 9(f) of this order (hereinafter "eligible graduates ); and (b) Those persons who both the Compliance Division and respondent agree are not described by part II, paragraphs 9(a) through 9(f) of this order (hereinafter "ineligible graduates ); and (c) Those persons who respondent considers to be ineligible graduates but who the Compliance Division considers to be eligible graduates (hereinafter "potentially eligible graduates 15. Arbitration shall determine whether each potentially eligible graduate is a person described by part III, paragraphs 9(a) through 9(f) of this order. Such arbitration shall be conducted according to the following provisions:

with the Special (a) Arbitration shall take place in accordance Arbitration Rules, Appendix I.

(b) Within three hundred and ninety (390) days after the date of service, respondent shall deposit in the United States mail, first class postage prepaid, an envelope, addressed to the American Arbitration Association, that shall contain:

(i) A Demand for Arbitration, in the language, manner, and form of Appendix J, which shall state:

a. That respondent denies that (name of graduate) is an eligible graduate; and b. The reasons respondent denies that (name of graduate) is an eligible graduate, including any affdavits, documents, or otherinformation supporting respondent's position; and c. That respondent has submitted the matter to arbitration pursuant to this order of the Commission; and (Ii) A copy of the claimant affdavit of (name of graduate), and a copy of his response, if any, to any letter mailed to him pursuant to part II, paragraph IO(b)(ii) ofthis order; and (iii) A copy of the Special Arbitration Rules, Appendix I. (c) Respondent shall be obligated to transmit to the American Arbitration Association $50.00 with each case submitted to arbitration.

RYDER SYSTEM, INC. 943 921 Decision and Order (d) The arbitrator s decision in each matter submitted to him shall be limited to his finding with respect to whether the potentially eligible graduate is a person described by part II, paragraphs 9(a) through 9(1) of this order.

(e) The arbitrator s decision in each and every matter submitted to him shall be transmitted to respondent within four hundred and eighty (480) days after the date of service. 16. (a) Within four hundred and ninety (490) days after the date of servce, respondent shall deposit in the United States mail, first class postage prepaid, an envelope addressed to each eligible graduate and to each person who has been determined by arbitration to be a person described by part II, paragraphs 9(a) through 9(1) of this order.

(b) The envelope shall contain two copies of a letter, in the language, manner, and form shown in Appendix K. 17. (a) Within ten (10) days after the date of receipt by the independent contractor of the releases described in part III paragraph 16(b) of this order, respondent shall compile a registry. Such registry shall contain the names and addresses of those persons whose releases have been received by the independent contractor within twenty (20) business days after the date specified in part II, paragraph I6(a) of this order. The persons whose names appear on the registry shall be the "refund recipients. (b) Within thirty (30) days after the date of receipt by the independent contractor of the releases described in part III paragraph 16(b) of this order, respondent shall deliver to the Compliance Division a compliance report consisting of a copy of said registry described in part III, paragraph 17(a) of this order and calculations of refund amounts due each refund recipient. (c) Within five (5) business days after the date specified in part II, paragraph I7(b) of this order, the Compliance Division shall review said compliance report, and the Director of the Bureau of Consumer Protection shall advise respondent in writing whether payment of such refund amounts to such refund recipients, provided that such payment is made in accordance with part III, paragraph 19 of this order, shall constitute satisfactory compliance by respondent with part III, paragraphs 1 through 19 of this order. 18. Respondent shall pay to each of the refund recipients, as defined in part III, paragraph 17 of this order, an amount as determined below:

(a) Respondent' s total payment obligation under this order shall not exceed One Milion Five Hundred Thousand Dollars ($1,500,000) under any circumstances.

Decision and Order 90 F. (b) Respondent's total payment obligation under this order shall be reduced by a sum equal to the monies expended by respondent for: (i) The cost to respondent of any independent contractor employed pursuant to part III, paragraphs I through 19 of this order; and (ii) Postage costs incurred by any such independent contractor and postage costs and other reasonable out-of-pocket costs incurred by respondent pursuant to part III, paragraphs 1 through 17 of this order; and (Iii) Reasonable personnel costs incurred by respondent pursuant to part II, paragraph 2 of this order; and (iv) The arbitration costs incurred by respondent pursuant to part , paragaph 15 of this order, limited to $50.00 per arbitration claim assessed by the American Arbitration Association. (c) The difference between One Milion Five Hundred Thousand Dollars ($1 500 000) and the sum of the costs described in part II, paragraphs 18(b)(i), (ii), and (Iii) of this order shall be the "cap figure.

(d) Subject to part II, paragraph 18(e) of this order, the "refund amount" for each refund recipient shall be equal to seventy-five percent (75%) of the total amount of tuition paid to respondent by or for the refund recipient after the following are subtracted from such total amount of tuition paid:

(i) Amounts paid for tuition by a governmental agency other than the United States Veterans Administration, or by the refund recipient' s employer without obligation of repayment by the refund recipient; and (Ii) Any prior refunds of tuition paid by respondent to the refund recipient.

(e) If the sum of all refund amounts, as defined by part II paragraph 18(d) of this order, would be greater than the cap figure, as defined by part II, paragraph 18(c) of this order, then the refund amount for each refund recipient shall be reduced on a pro rata basis so that the total of all refund amounts equals the cap figure. 19. (a) Within ten (10) days after the date specified in part II, paragaph 17(c) of this order, respondent, or, at respondent's option, an independent contractor, shall deposit in the United States mail, first class postage prepaid, an envelope, which shall be addressed to each refund recipient, which shall bear the return address of respondent or the independent contractor, and which shall contain: (i) One-quarter of the "refund amount" due each refund recipient pursuant to part II, paragraphs 18(d) and (e) of this order; and (Ii) A letter in the language, manner, and form shown in Appendix RYDER SYSTEM, INC. 945 921 Decision and Order (b) If the envelope addressed to any refund recipient is returned by the United States Postal Service, then respondent or the independent contractor shall attempt to locate such refund recipient through as many of the following methods as are necessary: (i) Sending a first class postage prepaid letter in the language, manner, and form shown in Appendix M, together with a first class postage prepaid envelope, to each of the names and addresses that relate to the refund recipient and that are in the respondent's or the independent contractor s possession, custody, or control either by reason of part III, paragraphs 7 or 9(d) of this order or by reason of information received by respondent or the independent contractor subsequent to the date of service.

(ii) Telephoning any telephone numbers that relate to the refund recipient and that are in the respondent's or the independent contractor s possession, custody, or control either by reason of part III, paragraphs 7 and 9(d) of this order or by reason of information received by respondent or the independent contractor subsequent to date of service.

(iii) Requesting the assistance of the Social Security Administration (hereinafter "SSA") by:

a. Providing SSA with the refund recipient' s name and SSA number, if it is known; and b. Providing SSA with a first class postage prepaid letter which shall bear the refund recipient's name on the envelope and which shall request the refund recipient to inform respondent or the independent contractor of his current address; and c. Tendering any required fee for such services to SSA; and d. Requesting SSA to mail such letter to the refund recipient. (c) If respondent or the independent contractor can locate the refund recipient's current address through the methods specified by part II, paragraph I9(b) of this order, then respondent or the at hisindependent contractor shall mail to the refund recipient, current address, the items described in part III, paragraph 19(a) of this order.

Provided, however that respondent or the independent contractor shall be entitled to deduct from the amount specified in part III, paragraph 19(a)(i) of this order for each refund recipient an amount equal to the reasonable out-of-pocket costs incurred by respondent in locating such refund recipient.

(d) Neither respondent nor the independent contractor shall have any duty to attempt to locate refund recipients except by the methods specified in part II, paragraph 19(b) of this order. 20. No later than one (I) year after the date specified in part II, Decision and Order 90 F. paragaph 19(a) of this order, respondent, or, at respondent's option, an independent contractor, shall commence again to perform the tasks described in part II, paragraph 19 of this order. 21. No later than two (2) years after the date specified in part II, paragraph 19(a) of this order, respondent, or, at respondent's option an independent contractor, shall commence again to perform the tasks described in part II, paragraph 19 of this order. 22. No later than May I, 1979, or two (2) years, nine (9) months after the date specified in part II, paragraph 19(a) of this order whichever date is later to occur, respondent, or, at respondent' option, an independent contractor, shall commence again to perform the tasks described in part II, paragraph 19 of this order. 23. Respondent shall maintain records and documents relating to respondent' s compliance with part III of this order for a period of three (3) years following the date of the final payment by respondent pursuant to part III of this order and such records and documents shall be made available to the Compliance Division at respondent' offces upon reasonable notice.

24. Within sixty (60) days after performing all the tasks described in part II, paragraph 19 of this order, within sixty (60) days after performing all the tasks described in part III, paragraph 20 of this order, within sixty (60) days after performing all the tasks described in part II, paragraph 21 of this order, and within sixty (60) days after performing all the tasks described in part III, paragraph 22 of this order, respondent shall fie with the Commission a written report setting forth the manner and form in which respondent bas complied with part II ofthis order.

25. If any task required to be performed or completed on a day certain under part III of this order falls upon a non-business day, then the task shall be performed on the following business day. 26. For good cause shown, the Commission s Assistant Director for Compliance may grant extensions of time to respondent, the independent contractor, the arbitrator, or the Compliance Division, of up to thirty (30) days at anyone time, for the performance of any of the provisions of part III of this order. In considering "good cause the Assistant Director for Compliance shall take into account needs resulting from any extensions previously granted. 27. Respondent shall notify the Commission at least thirty (30) days prior to any proposed change in the respondent such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of which may affect compliance obligations arising from this order. RYDER SYSTEM, INC. 947 921 Decision and Order APPENDIX A IMPORTANT INFORMATION Department of Trnsportation Requirements A person who wishes to obtain a tractor-trailer driver position with an interstate motor carrier is obliged to meet certain age, mental and physical requirements established by the United States Department of Transportation (DOT). You ate advied to obtain full information concerning the DOT requirements and to determine prior to enrollment whether there is anything which might disqualify you from meeting these requirements.

For full information about the DOT requirements, call or write: Bureau of Motor Carrier Safety Federal Highway Administration Department of Transportation Washington, D.C. 20590 Resident Training Centers In order to complete Ryder s tractor-trailer driver course, it will be necessary for you to spend (length of time) at one of Ryder s resident training centers listed below; (Insert all addresses of resident training centers J APPENDIX B Date:

Note: This table, compiled for period ending ( ), supersedes all previous editions.

IMPORTANT INFORMATION Regarding Students of Ryder Technical Institute Home Study Division Professional Truck Driver Training Course NOTE: Requirements for licensing tractor-trailer drivers vary from state to state. Many states require license applicants to take road tests on the types of vehicles they expect to drive, and the applicants are required, at their own expense, to furnish the vehicles needed to take the road tests. In addition to the usual vision tests and written tests which states require, some states also require applicants to take specialized written tests relating to the types of vehicles they expect to drive. You should also obtain information concerning employment in the types of trucking jobs in which you might like to work after graduation. Some employers will hire drivers who are under the age of twenty-five or who lack previous tractor-trailer experience and some employers will not. Some tractor-trailer jobs require union membership and some jobs do not. You should explore the availability of the particular typ of job in which you are personally interested. Information Regarding Post-Graduare Employment of Graduates: Results of Student Survey Within 90 Days of Graduation Jan-JUM, 1971; Number Percent Total Graduates 100 100 Decision and Order 90 F. Graduates Responding to Inquiries Within 3 Mos.

of Graduation Responding Graduates Who Reported Employment as Tractor-Trailer Drivers Within 3 Mos.

of Graduation, as a Percentae of Total Responding Graduates Responding Graduates Who Reported Employment as Tractor-Trailer Drivers, as a Percentae of Total Graduates Responding Graduates Who Report Other Employment and Tys of Such Employment Graduates Who Did Not Respond to Inquiries Certin Employers Known to Have Hired Persons Who Graduated from Ryder s National Professional Truck Driver Training Courses As Tractor-Trailer Drivers Jan/June 1974 Employers Employers Address Graduates Hired A Company B Company C Company Earnings Information Reported by Graduates from Ryder s National Professional Truck Driver Training Course Jan/June 1974 Graduates beginning at hourly rates between $3.00 and $3.

Graduates beginning at hourly rates between $4.00 and $4.

Graduates beginning at hourly rates between $5.00 and $5.

Graduates responding to inquiry about employment but declining to disclose earnings APPENDIX Dear Sir or Madam:

Under an order of the U. S. Federal Trade Commission, ageed to by us and effective as of (insert effective date), you are requested to fill out in full the enclosed affdavit questionnaire. You are also requested to sign it; swear to it before a notary RYDER SYSTEM, INC. 949 921 Decision and Order public or other person authorized to witness sworn statements in your state, and return it in the enclosed stamped, self-addressed envelope. The Federal Trade Commission has found that the collection of the information requested by this letter and the enclosed affidavit questionnaire is necessary to carry out a Federal Trade Commission order. Among other things, the order requires us to make certn tuition adjustments for certain former students who finished the resident training part of our tractor-trailer driver course during 1970, 1971 or 1972 or our heavy equipment operator course during 1971, 1972 or 1973. You are under no obligation to fill out or return the enclosed affidavit questionnaire. But your qualifications for any possible tuition adjustment wil not be considered unless you fill out the affdavit questionnaire and we receive it no later than (the date set forth in part III, paragaph 9(d) of this order If you fill out the afdavit questionnaire, please fill it out completely and truthfully. Answer all the applicable questions and answer them with the same care you would use in preparing a ta return, registering a motor vehicle, or undertking any other serious matter.

Keep in mind that you can be exposed to criminal penalties if you knowingly give false information.

DIRECfIONS: Please answer every question that applies to you in the affdavit questionnaire. Make your answers complete and truthful. After you have answered every applicable question in the affidavit questionnaire do not sign the affidavit questionnaire. Take it to a notary public or other person authorized to witness sworn statements in your state. Then sign and swear to the affdavit questionnaire in the presence of that person. He or she wil then notariz it. Please return the filed out, signed and notarizd affdavit questionnaire in the enclosed stamped, self-addressed envelope. MAIL IT EARLY ENOUGH TO REACH US BY (the date set forth in part III, paragaph 9(d) of this orders. If you should misplace the enclosed envelope, please mail the affdavit questionnaire to the (name and address on the return envelope J.

Thank you for your cooperation.

Sincerely, James M. Herron Vice President and Secretary ,Ryder System, Inc.

Enclosure APPENDIX D (Tractor-trailer form J UNITED STATES OF AMERICA BEFORE THE FEDERAL TRADE COMMISSIO!o In re Docket No. C-2915 Ryder System, Inc., et al. , I AFFIDAVIT OF (Give your name COUNTY OF (Give County where Affidavit is notarized) STATE OF (Give State where Affidavit is notarized) (Give your name), being duly sworn, deposes and answers the questions listed below as follows:

(PLEASE TYPE OR CAREFULLY PRINT ALL YOUR ANSWERS. 1. Did you ever take Ryder s tractor-trailer driver course? 0 YES 0 NO Decision and Order 90 F. lA. If your answer to Question 1 was NO but you tok and finished all of the resident training part of Ryder s heavy equipment operator course during 1971, 1972 or 1973, and you want to get an affidavit questionnaire similar to this one, but relating to the heavy equipment operator course, check here D, and skip to Question 14. Answer Question 14 and return this document in the enclosed postage paid envelope withat having it rwtarized. You wii get an affidavit on the heavy equipment operator course. 2. Did you finish aU of the resident training part of the course? 0 YES 0 NO (If your answer to Question 2 was YES, then pleas€ give full answers to all of the remaining questions that apply to you.

(If your answer to Question 2 was NO, skip to Question 14; don t answer Question 2A through Question 13; sign this document and return it in the enclosed postage paid envelope witJwt having it ndarized.

2A. Where did you take the resident training part of the course? (Give loatio of the resient training center) 2B. Did you finish the resident training part of the course during 1970, 1971 or 1972' 0 YES 0 :-0 When did you finish it? (Give moth and year w/wn you finis/wd t/w remdnt training part oftlw course) (If your answer to Question 2B was YES , then please give full answers to all of the remaining questions that apply to you.

If your answer to Question 2B was, then skip to Question 14; do not answer Questions 3 through 13; sign this document and return it in the enclosed postage paid envelope witJwt having it rwtarized.

3. Howald were you when you finished the resident training part of the course? years old. J was born on (Give date of birth) study part of the course: 4. When you first began the fu (a) Did you then have a job in the trucking industry? DYES D NO If you then had a job in the trucking industry, what job did you hold? LGive the job YrY hdd) (b) Did you then have a job in some other field? DYES D NO What field? (Gim! the fwld in which you then ha a job) What job did you hold? (Gi 'e the job which you /wld) (c) Were you unemployed? 0 YES D (d) Were you a student in some other school? DYES D NO What sort of school? (Gi e typ of scfwl in which you were a studnt) 5. When you first began the resint training part of the course: (a) Did you then have a job in the trucking industry? DYES D NO If you then had a job in the trucking industry, what job did you hold'? (Give the job ym). held) If you then held a job in the trucking industry, what company did you work for? (Give the name of the company) (b) Did you then have a job in some other field? DYES D NO What field? (Give the fwld in which you then hml a job) ) $ RYDER SYSTEM, INC. 951 921 Dccision and Order What job did you have? (Give the job you held) (c) Were you unemployed? 0 YES 0 NO (d) Were you a student in some other school? 0 YES Q NO What sort of school? (Give the typ of school in which you were a studnt) 6. What was the mvst im'Jnt reason or reasons for which you tok a truck driving course? ,LOOK OVER ALL OF THE REASONS BELOW AND THEN PUT A CHECK MARK (X) NEXT TO THE MOST IMPORTANT REASOK OR REASONS. YOU CAN CHECK MORE THAN O:-E REASON.

(a) I wanted to make use of Veterans Administration education benefit.. (b) I wanted to learn tractor-trailer driver skills but not for purpses of finding employment in the trucking industry.- (c) I want€d to find employment as a truck drver.- (d) I want€d to learn trucking skills in order to become an owner-operator in the trucking industry.- (e) was already a truck driver and I took the course to improve my driving skils so I might qualify for advancement.

(I) I wanted to LGive the most important rea."1on for which you took the course if it was none of the reasons given in (a) through (e)J 7. What was the total tuition cost for the home study and resident training part of the course? (Do not include interest charges. (Give total (Y appoximate tuition cost) 7A. Did a governmental agency other than the Veterans Admistration - for example, a Job Corps agency or a manpower rehabilitation agency - pay any part of this tuition? 0 YES 0 NO If so, how much? $ (Give arrnt which g07ernrnnt agency other than VA paid. Do rwt give arrnt which V A paid) 7B. Did your employer pay any part of this tuition? LJ YES 0 NO If so, how much $ (Give arrnt which you recall your emploer paid) 7C. If your employer paid any part of this tution, did you have any obligation to repay your employer? 0 YES 0 NO If so, how much of the tuition amount paid by your employer have you repaid to your employer? $ (Give arrnt which you recall you repaid) Are you obligated to repay any of this tuition amount to your employer in the future? 0 YES 0 NO If so, how much are you obligated to repay to your employer in the future? $ (Give arrnt which you are obligated to repay) 8. Did you ever get a fuJl or partial refund of the tuition for the course from Ryder' 0 YES 0 NO 8A. If your answer to Question 8 is YES, how much in total refunds do you recall getting from Ryder? (Give total amounts of refunds you recall receiving J T-n did you get a refund or refunds from Ryder? (Give month and year of refund or refunds, if knownJ 952 FEDERAL TRADE COMMISSION DECISIOXS Decision and Ordef 90 F. Why did you get that refund or refunds? (Give a full explanation of the refund or refunds J 9. Aft€r finishing the resident training part of the course, did you make a seri effor to find a job as a truck drver, or as a truck drving instructor or as a safety director or foreman of truck drivers? C, YES D NO 10. If your answer to Question 9 is YES, then skip to Question 11. If your answer to Question 9 is NO , what was the nwst impont reason why you did not make a serious effoct to find such a job? (LOOK OVER ALL OF THE REASONS BELOW AND THEN PUT A CHECK )lark (X) YEXT TO THE MOST IMPORTANT REASONS. CHECK ONLY ONE.

(a) I was then holding a different job and I did not want to switch.- (b) I decided I did not want to be a truck driver.- (c) I prefcITcd a job in another field.- (d) I decided that I did not want to work in the trucking industry.- (e) I decided to operate my own truck as an owner-operator.- (f) I was drafted or I enlisted in the military service. (g) I decided to go to another school or to stay in another school. (h) My family responsibilities prevented me from looking for such a job. (i) I did not make a serious effort to find such a job for a different reason, that is: (Explain fully J , you did make a 11. If, after finishing the resident training part of the course serious effort to find a job as a truck drver, or as a truck driving instructor or as a safety director or foreman of truck drvers, ANSWER ALL PARTS OF THIS QUESTIOK AS PRECISELY AS POSSIBLE. IF NECESSARY USE THE BLAYK PAGES ATTACHED TO THIS AFFIDAVIT QUESTIO:-:-AIRE TO FINISH YOUR ANSWER.

(a) After you finished the resident training part of the course, did you personlly visit any trucking companies or any other companies that hire truck drivers for the purpse of getting a job as a trw:k driver? C' YES (b) If your answer to Question l1(a) is YES , what is the total nurnr of companies driver?you personlly visited for th€ purpose of getting a job as a truk Give the total number of companies which you personally visited for the purpose of getting a job as a truck driver J (c) Give the names and locations of the companies that you recall personally visiting for the purpose of getting a job as a truck driver. l\!anw of Company Loatio RYDER SYSTEM, INC. 953 921 Decision and Order (d) Of the total number of companies listed in answer to Question 11(b), at how many of the companies did you fill out ajob application? (Give the total number of companies at which you filled out a job application) (e) If you did not fill Qut a job application at all of the companies you personally visited, why not? USE THE BLANK PAGES AT THE END OF THIS AFFIDAVIT QUESTIONNAIRE IF NECESSARY TO FINISH YOUR ANSWER. (f) Of the total number of companies listed in answer to Question 11(b), at how many such companies did you have a personal interview? (Give the total number of companies at which you had a personal intervew) (g) If you did not have a personal intervew at all of the companies which you personally viited, why not' USE THE BLANK PAGES AT THE END OF THIS AFFIDAVIT QUESTIONNAIRE IF NECESSARY TO COMPLETE YOUR ANSWER. Decision and Order 90 F. (h) After you made the personal visits to companies which you have described in answer to Questions 11(a) through l1(g), did you ever make a secon personl vit any of these companies for the purpse of obtaining employment? 0 YES 0 (i) If your answer to Question 11(h) is YES, at ho many companies did you make a second personal visit for the purpse of obtaining employment as a truck driver? (Give the number of companies which you personally visited a second time for the purpose of obtaining employment as a truck driver J (j) If your answer to Question 11(h) is YES, give the names of the companies that you recall personally visiting for a secon time for the purpose of getting a job as a truck drver.

Name oj Company (k) Aft€r you completed the resident training portion of the coure, did you seek employment as a truck driver or as a truck driving instructor or as safety director or foreman of truck drivers by making wl.phv calls to potential employers? 0 YES =: NO (1) If your answer to Question l1(k) is YES, then how many wl.pho calls did you make in the course of your effort to seek such employment? (Do not include any of the companies you personally visited.

LGive number of companies at which you sought employment by telephone) (m) If your answer to Question l1(k) is YES , then what were the names and locations of the companies which you recalt telephoning in the course of your effort to seek such employment? (Do not include any of the companies you personally visited. Name of Company LoatiA RYDER SYSTEM , INC. 955 921 Decision and Order (n) Aft€r personal1Jy visiting companies for the purpses of obtaining employment as a truck driver or as a truck drving instructor or as safety director or foreman of truck drvers, did you make any follow-up te/.pJw calls to any of those companies? DYESDNO (0) If your answer to Question 11(n) is YES , then how many foUnw-up tekpJw caus did you make to any companies you had personally visited? (Give number of companies to whom you made follow-up telephone calls after personal visits J (p) If your answer to Question l1(n) is YES, then what were the names of the companies to which you recall making foUovJ-Up te/.pJu C(LUS after personal visits for the purpose of seeking employment? Name of Company (q) After you completed the resident training part of the course, and after you had made some search for a job as a truck driver or as a truck drving instructor or as safety director or foreman of truck drvers, did you ever cont.at Ryder s resident training center for moe help in finding a job? 0 YES D NO (r) If you did contact Ryder s resident training center for more help, which Ryder resident training cent€r did you contact? (Give the loction of the Ryder resident training cenwr which you contacted for additional assistance J (s) Afwr you finished the resident training portion of the course, and aft€r you had made some search for a job as a truck driver or as a truck driving instructor or as safety director or foreman of truck drvers, did you ever contact any Ryder pevple other than the people at a reS'idnt training center for more help in finding a job? DYES DNO (t) If your answer to Queshon 11(s) is YES, what advice or assistance were you ven? GIVE A HILL ANSWER. IF NECESSARY USE THE BLANK PAGES 956 FEDERAL TRADE COMMISSION DECISIOliS Decision and Order 90 F. ATTACHED TO THIS AFFIDAVIT QUESTIONNAIRE TO COMPLETE YOUR ANSWER.

12(a). As a result of your trying to find a job, as describe in response to Question , were you ever offered a job:

0) as a tractor-trailcr drver? 0 YES 0 NO Oi) as a truck drving instructor? 0 YES 0 NO (iii) as a manager or safety director or foreman of truck drvers? 0 YES 0 NO (iv) If you were not offered such a job, please .JCxpJain why. GIVE A FL"LL ANSWER. IF NECESSARY USE THE BLANK PAGES ATTACHED TO THIS AFFIDAVIT QUESTIONNAIRE TO COMPLETE YOUR ANSWER. (b) If your answer to Question 12a)O) (ii) or (iii) is YES, did you actually start work on any such job you were offered? 0 YES 0 NO (c) If your answer to Question 12(b) is NO, explain in detail why you did not actually start work on any such job.

RYDER SYSTEM, INC. 957 921 Decision and Order 13. At any time between the end of your resident training and toay, have you ever worked as a:

(a) truck driver? 0 YES 0 NO (b) truck drving instructor? 0 YES 0 NO (c) safety director or formean of truck drivers? 0 YES 0 NO 14. My present home address is;

Number Street Aparment City State Zip Coe My home telephone is:

Area Code:

Kumber:

)1y present business address is:

Employer ame Number Street City State Zip Coe My business telephone number is:

AreaCode;

number:

My present job is:

Please give the name, home address and telephone number of a person who would know your home address at all times:

ame of person who would know your address at all times J Number Street Aparment City State Zip Coe Telephone Area Code Telephone Number Decision and Order 90 F. My Soial Seurity number is:

My Ryder student identification number was; (Give number if known 1 Signature (please READ THE ACCOMPANY.

ING LETTER BEFORE SIGNINGJ Subscribedayof_and sworn to before me this Nnt$! ry Pnhlir My Commission Expires:

WARNING: It is a federal crime for anyone to knowingly and willfully make a false, fictitious, or fraudulent statement or representation in any matter within the jurisdiction of any department or agency of the United States. 18 IOOI.

APPENDIX E (heavy equipment form) UNITED STATES OF AMERICA BEFORE THE FEDERAL TRADE COMMISSION In re Docket No. C-2915 Ryder System, Inc., et al.

AFFIDAVIT OF (Give your name COUNTY OF (Give County where Affidavit is notarized) STATE OF (Giue State where Affidauit is notarized) (Give your name1 being duly sworn, deposes and answers the questions listed below as follows:

(please TYPE OR CAREFULLY PRINT ALL YOUR ANSWERS. L Did you ever take Ryder s heavy equipment operator course? 0 YES D NO lA. If your answer to Question 1 was NO but you took and finished all of the resident training part of Ryder s tractor-trailer driver course during the years 1970 1971 or 1972, and you want to get an affidavit questionnaire similar to this one, but relating to the tractor-trailer driver coure, check here D, and skip to Question 16. Answer Question 16 and return the document in the enclosed postae paid envelope without having it notarized. You will get an affidavit on th€ tractor-trailer driver course.

2. Did you finish all of the resident training part of the course? DYES D NO (If your answer to Question 2 was YES, then please give full answers to all of the remaining questions which apply to you.

If your answer to Question 2 was NO, then skip to Question 16; don t answer Question 2A through Question 15; sign this document and return it in the enclosed postae paid envelope without having it notarized. 2A. Where did you take the resident training part of the course? (Give location of the resident training center) 2B. Did you finish the resident training part of the course during 1971, 1972, or 1973' 0 YES 0 NO RYDER SYSTEM, INC. 959 921 Decision and Order When did you do so? (Give moth and year when you finished the resint training part of the course) (If your answer to Question 2B was YES, then please give full answers to all of the remaining questions that apply to you.

If your answer to Question 2B was NO, then skip to Question 16; do not answer Questions 3 through 15; sign this document and return it in the enclosed postage paid envelope withot having it rwtariud.

3. How old were you when you finished the resident training par of the coure? I was years old. I was born on (Give dare of birth) study part of the course: 4. When you first began the ho (a) Did you then have a job as a heavy equipment operator? 0 YES D NO If you then had a job as a heavy equipment operator, what job did you hold? (Give the job whwh y"" /U1d) .

(b) Did you then have a job in some other field? 0 YES 0 NO What field? (Give t/w field in which you t/wn ha a job) What job did you hold? (Give t/w job which you /wid) (c) Were you unemployed? eyes 0 NO (d) Were you a student in some other school? DYES 0 NO What sort of school? (Give typ of schol in which you were a studnt) 5. When you first began the resint training portion of the course: (a) Did you then have a job as a heavy equipment operator? 0 YES 0 NO If you then had a job as a heavy equipment operator, what job did you hold? (Give the job whwh y"" /U1d) If you then had a job as a heavy equipment operator, what company did you work for? (Give t/w name of t/w company) (b) Did you then have a job in some other field? DYES 0 What field? (Give t/w field in which you th€n ha a job) What job did you have? (Give th€job which yrm Mid) (c) Were you unemployed? DYES D NO (d) Were you a student in some other school? 0 YES 0 NO What sort of school? (Give typ of schol in which YfYU were a studnt) 6. What was the rrst impont reason or reasons for which you tok a heavy equipment course? (LOOK OVER ALL OF THE REASONS BELOW AND THEN PUT A CHECK MARK (X) NEXT TO THE MOST IMPORTANT REASON OR REASONS. YOU CAN CHECK MORE THAX ONE REASON.

(a) I wanted to make use of Veterans Administration education benefits. (b) I wanted to learn heavy equipment operator skils but not for purposes of finding employment as a heavy equipment operator. (c) I wanted to find employment as a heavy equipment operator.- (d) I wanted to learn heavy equipment skils in order to become an owner-operator of heavy equipment.

(e) I was already a heavy equipment operator and I tok the course to improve my skins so I might qualify for advancement.

(f) I wanted to ) $ Decision and Order 90 F. (Give the most important reason for which you took the course if it was none of the reasons stated in (a) through (e)) 7. What was the total tuition cost for the home study and resident training part" of the course? (Do not include interest charges. (Give total or appoximaw tuitWn cost) 7 A. Did a governmental agency other than the Veterans Admjni1!tration - for example, a Job Corps agency or a manpower rehabilitation agency - pay any part of this tujtion? 0 YES 0 :,..m If so, how much? $ (Give amont which g(Jernment agency other than V A paid. Do wt insert amont which V A paid) 7B. Did your employer pay any part of this tuition? DYES 0 NO If so, how much? $ (Giv' e amont which Y(J recall your empkrer paid) 7C. If your employer paid any part of this tuition, did you have any obligation to repay your employer? 0 YES 0 NO If so, how much of the tuition amount paid by your employer have you repaid your employer? $ (Give amont which you recall you repaid) Are you obligated to repay any of this tuition amount to your employer in the future? 0 YES 0 NO If so, how much are you obligated to repay to your employer in the future? $ (Give amont which you are oMigawd w repay) 8. Did you ever get a full or partial refund of the tuition for the course from Ryder' 0 YES 0 NO 8A. If your answer to Question 8 is YES, how much in total refunds do you recall getting from Ryder? (Give total amounts of refunds you recall receiving) When did you get a refund or refunds from Ryder? (Give month and year of refund or refunds, if known) VVy did you get that refund or refunds? (Give a full explanation of the refund or refunds J 9. After finishing the resident training part of the course, did you make a seric; effor to find a job as a heavy equipment operator or as a heavy equipment operation instructor or ag safety director or foreman of persons engaged in heavy equipment operation? 0 YES 0 NO 10. If your answer to Question 9 is YES, then skip to Question 11. If your answer to Question 9 is, what was the most impont reason why you did not make a serious effort to find such a job? (LOOK OVER ALL OF THE REASONS BELOW AND THEN PUT A CHECK MARK (X) NEXT TO THE MOST IMPORTANT REASO:-. CHECKONLYONE. (a) I was then holding a different job and I did not want to switch.- (b) I decided I did not want to be a heav:r equipment operator.- (c) I preferred a job in another field.- RYDER SYSTEM, INC. 961 921 Decision and Order (d) I decided that I did not want to work as a heavy equipment operator. (e) I decided to operate my own heavy equipment as an owner-operator. (f) I was draft or I enlisted in the military servce. (g) I decided to go to another school or to stay in another school. (h) My family responsibilities prevented me from looking for such a job. (i) I did not make a serious effort to find such a job for a different reason, that is: (Explai fully I 11. If, after finishing the resident training part of the course, you did make a serious effort to find a job as a heavy equipment operatm or a heavy equipment operation instructor or as safety director or foreman of persons engaged in heavy equipment operation, ANSWER ALL PARTS OF THIS QUESTION AS PRECISELY AS POSSIBLE. IF NECESSARY USE THE BLANK PAGES ATTACHED TO THIS AFFIDAVIT QUESTIONNAIRE TO FINISH YOUR ANSWERS. (a) Aftr you complete the resident training part of the course, did you personally visit companies that hire heavy equipment operators for the purpose of getting ajob a heavy equipment operator? 0 YES 0 NO (b) If your answer to Question l1(a) was YES, what is the total number companies that you personally viited for the purpoe of getting job as heavy equipment operator? (Give the total number of companies which you personally visited for the purpose of getting a job as a heavy equipment operator) (c) Give the names and locations of the companies that you recall personally viiting for the purpose of getting a job as a heavy equipment operator. Name of Company Location Decision and Order 90 F. (d) Of the tota number of companies listed in answer to Question l1(b), at how many such companies did you fil out ajob application? (Give the total number of companies at which you filled out a job application) (e) If you did not fill out a job application at all of the companies which you personally visited why notl USE THE BLANK PAGES AT THE END OF THIS AFFIDAVIT QUESTIONNAIRE IF NECESSARY TO COMPLETE YOUR ANSWER. (f) Of the total number of companies listed in answer to Question l1(b), at how many such companies did you have a personal interview? (Give the total number of companies at which you had a personal intervew J (g) If you did not have a personal interview at all of the companies which you personally visited why notl USE THE BLA",K PAGES AT THE END OF THIS AFFIDAVIT QUESTIONNAIRE IF NECESSARY TO COMPLETE YOUR ANSWER. (h) After you made the personal visits to companies which you have described in answer to Questions l1(a) through l1(g), did you ever make a second personal visit any of these companies for the purpose of obtaining employment? 0 YES 0 NO RYDER SYSTEM, INC. 963 921 Decision and Order (i) If your answer to Question l1(h) is YES, at how many companies did you make a second personal visit for the purpose of obtaining employment as a heavy equipment operator? (Give the number of companies which you personally visited a second time for the purpose of obtaining employment as a heavy equipment operator J CD If your answer to Question 11(h) is YES, give the names of the companies that you recall personally visting for a second time for the purpose of getting a job as a heavy equipment operator.

Name of Company (k) After you completed the resident training portion of the course, did you seek employment as a heavy equipment operator or a heavy equipment operation instructor or as safety director or foreman of persons engaged in heavy equipment operation by making telephone calls to potential employers? DYES D NO (1) If your answer to Question lick) is YES, then how many telephone calls did you make in the course of your effort to seek such employment? (Do not include any of the companies you personally visited.

(Give number of companies at which you sought employment by telephone J (m) If your answer to Question lick) is YES, then what were the names and locations of the companies which you recall telephoning in the course of your efforts to seek such employment? (Do not include any of the companies you personally viited. Nal' of Company UJcation Decision and Order 90 F. (n) After personally visiting companies for the purpose of obtaining employment as a heavy equipment operaror or as a heavy equipment operation instructor or as safety director or foreman of persons engaged in heavy equipment operation, did you make any follow.up telephone calls to any of those companies? DYES D NO (0) If your answer to Question 11(n) is YES, then how many follow-up telephont calls did you make to any companies you had personally visited? (Give number of companies to which you made follow-up telephone calls after personal visits) (p) If your answer to Question l1(n) is YES, then what were the names of the companies to which you recall making follow-up telephone calls. after personal visits for the purpose of seeking employment? Name of Company 12. (a) After you finished the resident training part of the course, did you personally visit any union hiring halls for the purpose of getting job as a heavy equipment operator? 0 YES 0 NO (b) If your answer to Question 12(a) was YES , what is the total number of union hiring halls which you personally visited for the purpose of getting job as a heavy equipment operator? (Give the total number of union hiring halls which you personally visited for the purpose of getting a job as a heavy equipment operator. (c) List the names and locations of the union hiring halls you recall personally viiting for the purpose of getting a job as a heavy equipment operator. Name and Number of Union Location of Hiring Hall RYDER SYSTEM, INC. 965 921 Decision and Order (d) Of the tota number of union hiring halls listed in answer to Question 12(b), at how many such halls did you fil out an application for membership? (Give the total number of union hiring halls at which you filed out an application for membership.

(e) If you did not fill out an application at all of the union hiring halls which you personally visited, why not? USE THE BLANK PAGES AT THE END OF THIS AFFIDAVIT QUESTIONNAIRE IF NECESSARY TO FINISH YOUR ANSWER. (f) Of the total number of union hiring halls listed in rumwer to Question 12(b), at how many of them did you have a personal interview with a business agent or other union offcial? (Give the total number of union hiring halls at which you had a personal intemew) (g) If you did not have a personal intervew at all of the union hiring halls you personally visited, why not? USE THE BLANK PAGES AT THE END OF THIS AFFIDAVIT QUESTIONNAIRE IF NECESSARY TO COMPLETE YOUR ANSWER. Decision and Order 90 F. (h) After you made the personal visi to the union hiring hall, which you have described in answer to Questions 12(a) through 12(g), did you ever make a second personal visit to any of these union hiring halls for the purpose of getting a job? DYESD NO (i) If your answer to Question 12(h) was YES , at how many union hiring halls did you make a second personal visit for the purpose of getting a job as a heavy equipment operator? (Give the number of union hiring halls which you personally visited a second time for the purpose of obtaining employment as a heavy equipment operator. CD If your answer to Question 12(h) was YES, list the names and locations of the union hiring halls which you recall personally visiting for a second tim€ for the purpose of getting a job as a heavy equipment operator. Name and Number of Union Location of Hiring Hall (k) After you finished the resident training part of the course, did you try to get a job as a heavy equipment operator or as a heavy equipment operation instructor, or as safety director or foreman of persons engaged in heavy equipment operation by making telephone calls to union hiring halls? 0 YES 0 NO (1 If your answer to Question 12(k) was YES, then how many telephone calls did you make in the course of your effort to get such a job? (Do not include any of the union hiring halls visited.

(Give number of union hiring halls at which you tried to get a job by telephone. (m) If your answer to Question 12(k) was YES, then what were the names and locations of the union hiring halls which you recall telephoning in the course of your effort to get a job? (Do not include any of the union hiring halls you personally visited.

Name and Number of Union Location of Hiring Hall RYDER SYSTEM, INC. 967 921 Decision and Order (n) Mt€r personally visiting union hiring halls to get a job as a heavy equipment operator or as a heavy equipment operation instructor or as safety director or foreman of persons engaged in heavy equipment operation, did you make any follow-up telephone calls to any of those union hiring halls? 0 YES D NO (0) If your answer to Question 12(0) was YES, then how many follow-up telephone calls did you make to any union hiring halls you had personally visited? (Give number of union hiring halls to which you made follow-up telephone calls after personal visits.

(P) If your answer to Question 12(0) was YES, then what were the names and locations of the union hiring halls to which you recall making follow-up telephone calls, after personal visits, to try to get a job? Name and Number of Union Location of Hiring Hall 13(a) After you finished the resident training part of the course, and after you had tried to find a job as a heavy equipment operator or as a heavy equipment operation instructor or as safety director or foreman of persons engaged in heavy equipment operation, did you ever contact Ryder s resident training center for more help in finding a job? 0 YES 0 KG (b) If you did contact Ryder s resident training center for additional help, which Ryder resident training center did you contact? (Give the location of the Ryder resident training center which you contacted for additional help J Decision and Order 90 F. (c) After you finished the resident training part of the course, and after you had made some search for a job as a heavy equipment operawr or as a heavy equipment operation instructor or as safety director Of foreman of persons engaged in heavy equipment operation, did you ever contact any Ryder personnel other than personnel at a resent training center for additional help in finding a job? 0 YES 0 NO (d) If your answer to Question 13(c) was YES, what advice or help did you get? GIVE A FULL ANSWER. IF NECESSARY USE THE BLANK PAGES ATTACHED TO THIS AFFIDAVIT QUESTIONNAIRE TO COMPLETE YOUR ANSWER. a) As a result of your trying to get a job as described in your response to Questions 11, 12, and 13, were you ever offered a job? (i) as a heavy equipment operator? 0 YES 0 NO (ij) as an instructor of heavy equipment operation? 0 YES 0 NO (iii) as a manager or safety director or foreman of persons in heavy equipment operation? 0 YES 0 NO (iv) If you were not offered such a job, please explain why. GIVE A FULL ANSWER. IF NECESSARY USE THE BLANK PLAGES ATTACHED TO THIS AFFIDAVIT QUESTIONNAIRE TO COMPLETE YOUR ANSWER. (b) If your answer to Question 14(a) (i) (ii) or (iii) was YES, did you actually start work on any such job you were offered? 0 YES 0 NO () RYDER SYSTEM, INC. 969 921 Decision and Order (c) If your answer to Question 14(b) was NO, explain in detail why you did not actually start on any such job.

15. At any time between the end of your resident training and toay, have you ever held ajobfvr moe than day as a: (a) heavy equipment operator? DYES 0 NO (b) instructor of heavy equipment operation? 0 YES 0 NO (c) safety director or foreman of persons engaged in heavy equipment operation? o YESDNO (d) If your answer to Question 15(a), (b), or (c) was YES , how long did you hold such ajob? 16. .My present home address is;

Number Street Apartment City State Zip Code My home telephone number is:

Area Code:- Number:

My present business address is:

Employer s Name Decision and Order 90 F. Number Street City State Zip Code My business telephone number is:

Area Code:

number:

My present job is:

Please give the name, home address and telephone number of a person who would know your home address at all times:

IN ame of person who would know your address at aU times J Number Street Apartment City State Zip Code Telephone Area Code Telephone Number My Social Security number is:

My Ryder student identification number was: (Give number if known J Signature ,PLEASE READ THE ACCOMPANY- I1iG LETTER BEFORE SIGKI:-GJ Subscribeddayof_and sworn to before me this K()hr, PTlhlir My Commission Expires:

WARNING: It is a federal crime for anyone to knowingly and willfully make a false, fictitious, or fraudulent statement or representation in any matter within the jurisdiction of any department or agency of the Lnited Sates. 18 C.S. IOO1.

APPENDIX F IMPORTANT NOTICE (:-ame) (Address) (Telephone :\number) Dear (Xame):

This letter relates to the affidavit questionnaire (attached) which you returned to us. A review of your answers to the questionnaire shows that your amwers to RYDER SYSTEM, INC. 971 921 Decision and Order Questions 1, 2, 3, 4, 5, 6, 7, 8, 9. 10, 11, 12, 13, 14, 15, and 16 appear to be inconsistent with your answers to Questions 1 , 2, 3, 4, 5, 6, 7 , 8, 9, 10, 11, 12, 13, 14, 15, and 16. (Note circled answers).

It is necessary, before we and the Federal Trade Commission can complete our determination of whether or not you qualify for a tuition adjustment, that you clarify the answer(s) by using the blank sheet of paper attached to the back of your questionnaire.

Your explanation must be truthful and complete. You should be aware that although your explanation need not be notarized, you can be subjected to the same criminal penalties for an untruthful answer as in the affdavit. 18 C. 1001. Your affdavit, with your explanation inserted on the blank sheet attached to it, must be received no later than (insert date set forth in Part III, paragraph 10(e) of this order J or it cannot be considered for purposes of determining whether or not you qualify for a tuition adjustment. Return your affidavit, with your explanation, in the enclosed, postae prepaid envelope.

By, Enclosures APPENDIX IMPORTANT NOTICE (Name) (Address) (Telephone Number) Dear (Name) Thi letter relates to the affdavit questionnaire (attached) which you returned to us. A review of your answers to the questionnaire shows that your answer(s) to Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9 15 and 16 appear to be unclear or nonresponsive. (Note circled answers.

It is necessary, before we and the Federal Trade Commission can complete our del:rmination of whether or not you qualify for a tuition adjustment, that you clarify the answer(s) by using the sheet of paper attached to the back of your questionnaire. Your explanation must be truthful and complete. You should be aware that although your explanation need not be notarized, you can be subjected to the same criminal penalties for an untruthful answer as in the affdavit. 18 U.s. c. 100l. Your affdavit, with your explanation insertd in the blank sheet attached to it must be received no later than (insert date set forth in Part III, Paragraph 10(e) of this order J or it cannot be considered for purposes of determining whether your qualify for a tuition adjustment. Return your affdavit, with your explanation, in the enclosed, postage prepaid envelope.

By, Enclosures . If you should misplace the enclos . potae prepaid envelope. mai your afdavit and explanation in an envelope addreo to findependent contractor s addreB J . If you should misplace the enclDB. potae prepaid envelope, mai your afidavit and explanation in an envelope addreo to (independentcont'racwr slldd'reBj. , Decision and Order 90 F. APPENDIX H IMPORTANT NOTICE (Name) (Address) (Telephone Number) Dearth(Name):letter relates to the affdavit questionnaire (attached) which you returned to us. A review of your questionnaire showed that the following circled questions were not answered: 1 , 2 5, 6 , 11, 12, 13, 14, 15, and 16. (Note circled answers. It is necessary, before we and the Federal Trade Commission can complete our determination of whether or not you qualify for a tuition adjustment that the unanswered questions are answered by you in the appropriate places on the enclosed quetionnaire.

Your answers must be truthful and complete. You should be aware that although your answers need not be notarized, you can be subjected to the same criminal penalties for an untruthful answer as in the affdavit. 18 U. c. 1001. Your affidavit, with the circled questions answered in the appropriate places, must be received no later than (insert date set forth in Part III, paragraph lO(e) of this order) or it cannot be considered for purposes of determining whether or not you qualif for a tuition adjustment. Return your affdavit, with your answers, in the enclosed, postae prepaid envelope.

By, Enclosures APPENDIX I SPECIAL ARBITRATION RULES FOR NEGOTIATED CONSENT ORDER (DOCKET Old. C-2915) BETWEN THE FEDERAL TRADE COMMISSIOOI AND RYDER SYSTEM, INC. FOR ARBlTRATIOOI THROUGH THE ANIERICAN ARBITRATION ASSOCIA TIOOI 1. Initiation of Arbitmtion With respect to each potentially eligible graduate, for purposes of a tuition adjustment, as the term "potentially eligible graduate" is defined in part III, paragaph 14(c) afthe above.captioned order (hereinafter "order ), Ryder System, Inc. proceeding within the time(hereinafter "respondent") shall initiate an arbitration specified in part III. paragaph 15(b) of the order, by sending to (name and address of the representative of the American Arbitration Association (hereinafter "AA" )) the following information and documents in duplicate: . If you should miplace the endo!, poWge prepaid envelope, mail your afdavit with your IUswers in IU envelope addres to lindepcndent contnl tor B addres) RYDER SYSTEM, INC. 973 921 Decision and Order (1) A " Demand for Arbitration" in the language, manner, and form shown herein as Appendix J.

(2) A copy of the claimant affdavit, as defined in part III, paragaph 7 of the order and a copy of all other documents previously submitted to respondent by the potentially eligible graduate in connection with any of the provisions of part III of the order.

(3) A notarized affidavit in which respondent assert that it believes it has a reasonable basiB for denying a partial tuition refund to said Claimant and arbitrating the matter pursuant to the proviions of part III of the order, and that it desires to place the issue in arbitration, which affdavit shall be supported by one or more of the following:

(i) A sworn affidavit based on first hand knowledge asserting facts controverting material facts set forth in the claimant affdavit or other documents submitted to respondent by the potentially eligible graduate in connection with any of the proviions of part III of the order.

(ii) Documentary evidence, fully identified as to source, date, and other material facts pertaining thereto, which controvert material facts in the claimant affidavit on which the Federal Trade Commission bases its claim that the potentially eligible graduate is a person described in part III, paragaphs 9(a) through 9(t) of the order. (il) Reference to the provisions of respondent's Initial Compliance Report which authoriz arbitration in the absence of the materials described in subparagraphs I(3)(i) or (ii) above.

(4) A copy of part III, paragaphs 9 through 15 and 26 of the order, and the Initial Compliance Report.

II. Appointment of Arbitrator With respect to each matter for which a Demand for Arbitration is submitted, AA shall appoint an arbitrator to arbitrate said dispute, and shall appoint another arbitrator whenever an appointed arbitrator is unable to serve promptly. All such arbitrators appointed by AA, including any such arbitrators employed by AA shall be persons qualified by AAA as arbitrators. III. Determination by Arbitrator as to Whether Respondent Has A Reasonable Basis for Demanding Arbitration Upon receipt of the Demand for Arbitration from respondent, the arbitrator shall examine the accompanying affdavits and documents described in part I of these rules and shall determine whether there is any factual basis for putting through arbitration respondent' s claim that the potentially eligible graduate is not a person described in part III, paragaphs 9(a) through 9(t) of the order. In making the determination the arbitrator shall be limited to and bound by the standards and definitions of part III paragaphs 9 through 15 and 26 of the order, and the Initial Complaince Report. If the arbitrator decides that the demand for arbitration by respondent is inconsistent with part III, paragaphs 9 through 15 and 26 of the order, and the Initial Compliance Report, he shall so inform respondent by letter and shall close the case if respondent within ten (10) days after receipt of said letter, fails to provide the arbitrator with material facts which demonstrate that arbitration would not be inconsistent with part III, paragaphs 9 through 15 and 26 of the order, and the Initial Compliance Report. IV. Evidence by Filing of Documents Decision and Order 90 F. All evidence submitted by parties to the arbitrated dispute shall consist of written information or documents. No oral testimony shall be accepted. V. RelevaTlY and Materiality of Evidence The arbitrator shall be the sole judge of the relevancy and materiality of the evidence offered.

VI. Trnsmittal of Evidence to Opposing Party Upon determining that respondent' s request for arbitration is not inconsistent with part III, paragaphs 9 through 15 and 26 of the order, and the Initial Compliance Report, pursuant to part III of these rules, the arbitrator shall mail to the potentially eligible graduate copies of respondent' s Demand for Arbitration and all documents submitted to the arbitrator by respondent. VII. Submission of Rebuttal and Additional Evidence Within fiften (15) days after receiving copies of said documents referred to in part I of these rules, the potentially eligible graduate may submit to the arbitrator any information or documents which he or she believes are relevant to rebut respondent' claim that he or she is not a person described in part III. paragraphs 9(a) through g(l) of the order and is, therefore, not eligible for a partial tuition adjustment. The arbitrator shall immediately mail copies of all such information and documents to respondent and respondent shall have the right to respond within seven (7) days after receipt of such information and documents. The arbitrator may request such additional evidence as he or she deems necessary from either party before closing the arbitration and shall allow said party seven (7) days after receipt of said request to provide such evidence. VIII. Arbitrator s Decision With respect to each arbitration proceeding, and on the basis of evidence received pursuant tD these rules, the arbitrator shall render his or her decision within ten (10) days aftr said arbitration proceeding is closed, by AAA mailing a notice of his or her decision to both parties without including in said notice any detailed findings of fact or opinion, and said decision shall be limited to and shall be final and binding on both parties with respect tD whether the potentially eligible graduate is a person described in part III, paragaphs 9(a) through 9(t) of the order. The decision shall not be made solely on the failure of a party to submit rebuttal evidence or evidence requested. IX. Burdn of Proof Respondent, in all cases referred to arbitration pursuant to part III. paragraph 15 of the order, shall carry the burden of pruof to establish that a potentially eligible paragraphs 9(a) through g(l) of thegraduate is not a person described in part III, order.

General Provisions A. To the extent not inconsistent with these special rules, the Commerical Arbitration Rules of AA shall apply to proceedings under these rules. B. Either party may have evidence submitted under these rules by an attorney representing said party. However, use of an attorney is not required. RYDER SYSTEM, INC. 975 921 Decision and Order XI. Costs A. The administrative fee payable to the AA for each matter submitted to arbitration shall be $50.00. When respondent demands arbitration, it shall tender said fee with its Demand for Arbitration.

XII. Nothing in these Rules shall invalidate or restrict any right or remedy of any consumer under any State or Federal law.

APPENDIX J DEMAND FOR ARBITRATION THROUGH THE AMERICAN ARBITRATION ASSOCIATION Date TO: (Name of potentially eligible graduate) (Address) (City and State) (Zip Code)- Through: American Arbitration Association 140 West 51st Street New York, New York 10020 Attn: Mr. Michael Hollering From: Ryder System, Inc.

After reviewing the affdavit you submitted and other information you submitted if any, Ryder System, Inc. ("Ryder ) has decided that you do not qualify for a partial tuition refund under the terms of the Consent Order (Docket No. C-2915) between the Federal Trade Commission and Ryder. Therefore, pursuant to the Consent Order, Ryder has submitted this matter to arbitration. Ryder believes you do not qualify for a partial tuition refund for the following reasons (as more fully explained in the enclosed affdavit executed by Ryder): A copy of the affdavit you submitted and a copy of any other information you !mbmitted to Ryder iB enclosed, Also enclosed are the following documents: (1) Ryder s affdavit, with supporting documents, explaining why Ryder believes you are not eligible for a partial tuition refund. (2) A copy of the Special Arbitration Rules which the arbitrator will use in deciding whether you qualify for a partial tuition refund, In deciding whether or not you are entitled to a partial tuition refund, the arbitrator will review copies of the enclosed documents plus any additional information you provide.

If you wish to provide the arbitrator with any information in regard to your entitlement to a partial tuition adjustment, you must provide him or her (either personally or through an attorney) with such information within fifteen (15) days from the date you receive this notice. You may send to the arbitrator in writing, any of the following types of information.

Decision and Order 90 F. (1) An explanation of any statement you made in your affidavit or any statement you made in another document you submitted to Ryder; (2) Any additional information you believe is significant, or copies of any documents you believe are significant, in regard to your eligibility for a partial tuition refund.

(3) A statement contradicting or challenging Ryder s affidavit or supporting documents.

All information submitted to the arbitrator must be in writing. However if you have any qU€tions in regard to how this arbitration procedure will work, you may call: American Arbitration Association, (Area Code) (Telephone Number J. There will be no cost to you for this arbitration proceeding and you are not required to submit any information to the arbitrator. NOTICE THE ARBITRATOR MUST RECEIVE ANY INFORMATION YOU DECIDE TO SUBMIT WITHIN FIFTEEN DAYS FROM THE DATE YOU RECEIVE THIS NOTICE.

Carefully review the enclosed copy of your affdavit-questionnaire, Ryder afdavit, and other enclosed documents submitted by Ryder. Then decide whether you wih to submit any information which may contradict what Ryder has submitted or which in any way may support your claim to a partial tuition refund. Mail any information you wih to submit to:

American Arbitration Association 140 West 51st Street New York, New York 10020 Attn: Mr. Michael Hollering APPENDIX K IMPORTANT NOTICE (Independent Contractor Return Address) Dear (Name):

Pursuant to an order of the Federal Trade Commission issued on (insert effective date), Ryder System, Inc., has been directed to make certin partial refund payments to certn students who had enrolled in tractor-trailer driving or heavy equipment operations courses previously offered by Ryder. The order of the Commission contains the provisions identifying the class of persons eligible for partial refunds, and the procedures for making partial refunds. (You may obtain a copy of the order without charge by writing to the Federal Trade Commision, Publications, Room 130, Washingtn, D.C. 20580. Refer to Ryder System, Inc., Docket No. C-2915.

In accordance with the proviions of the Order, it has been det€rmined that you are entitled to a partial refund of approximately - percent to - percent of your tuition, which shall be paid in four installments on or before the following dates: (insert the daws set forth in part III, paragaphs 19(a), 20, 21 and 22 of this order J. The order provides that any persons receivig refund payments from Ryder must RYDER SYSTEM, INC. 977 921 Decision and Order agee in writing that, in consideration of such refunds, he or she releases Ryder from any and all further claims, known or unknown, with respect to or arising from tuition for Ryder s course or courses. ACCORDINGLY, NO LATER THAN (insert date twenty (20) days after date set forth in part III, paragraph 16(a) of this order J YOU MUST SIGN AND RETURN TO RYDER A COPY OF THIS LETTER CONFIRMING YOUR AGREEMENT THAT THE REFUND PAYMENTS YOU RECEIVE FROM RYDER WILL BAR YOU FROM MAKING ANY AND ALL CLAIMS AGAINST RYDER RELATING TO YOUR TUITION AT ANY TIME IN THE FUTURE. IF YOU DO NOT SIGN AND RETURN TO RYDER A COPY OF THIS LETTER BY THAT TIME, YOU WILL NOT BE ENTITLED TO ANY REFUND PAYMENT. Note: To insure receipt of the later refund installments, you should send us written notice of any change in your name or home address. Note: The order of the Commission does not affect any tuition loan obligations you may have incurred in connection with your attendance at the Ryder school. Ryder System, Inc.

RELEASE IN CONSIDERATION OF THE PARTIAL REFUND PAYMENTS TO BE MADE TO ME PURSUANT TO THE PROVISIONS OF THE ORDER DESCRIBED ABOVE I HEREBY RELEASE RYDER SYSTEM, INC. AND ALL OF ITS SUBSIDIARIES AND AFFILIATES, FROM ANY AND ALL FURTHER CLAIMS, KNOWN OR UNKNOWN, WITH RESPECT TO OR RELATING TO MY TUITION FOR A RYDER COURSE OR COURSES.

(Signature) (Date) Remember, you must return a signed and dated copy of this letter no later than (insert date twenty (20) days after date set forth in part III, paragaph 16(a) of this order J to (Independent contractor s address). IF YOU DO NOT DO SO YOU WILL NOT RECEIVE ANY REFUND PAYMENTS. APPENDIX L (If this appendix accompanies the first, second, or third installments, pursuant to part III, paragaphs 19(a), 20 and 21 of this order, then it shall read:) (Name) (Address) Dear (Name)' Enclosed is a check for the amount of the (first, second, third) installment of your partial tuition refund. The next installment wil be sent on or before (insert the Correct date from among those set forth in part III, paragaphs 20, 21 and 22 of this order).

If you change your name or address please send written notice of the change to (name and address of Ryder or the independent contractors. BY' Decision and Order 90 F. (If this appendix accompanies the last installment, pursuant to part III, paragaph 22 of this order, then the appendix shall read: (Name) (Address) Dear (Name):

Enclosed is a check for the amount of the fourth and last installment of your tuition refund. It will no longer be necessary for you to notify us of a change in your name or address.

By, APPENDIX M (Respondent' s or independent contractor s address J (Name) (Address) Dear (Name):

Ryder System, Inc. has a check which it is attempting to deliver to (name of refund recipient). If you know his (or her) current address, please send us that information. You may send his (or her) current address by writing it on the bottom of this letter or on a separate piece of paper and mailing it to the above address as soon as possible. By, Current Address;

APPENDIX N (Name) (Address) Dear (Name):

Pursuant to an order of the Federal Trade Commission, agreed to by this company and effective as of (insert effective date), you are requested to provide us with the last known address of (insert name ofgraduateJ. It is believed that this person graduated from a Ryder home study-resident training course. The Federal Trade Commission had determined that the collection of certain information from certain Ryder graduates is necessary in order to implement the terms of a Federal Trade Commission order which, among other things, requires the company to make certain tuition adjustments for certain graduates, possibly including the person listed above.

If you know the current address of the person listed above (whose name is underlined above), please list it in the spot provided at the bottom of this page and return it to us in the enclosed postage prepaid envelope as soon as possible. RYDER SYSTEM, INC. 979 921 Decision and Order (current address of person listed above) Your cooperation will be appreciated.

Sincerely, James M. Herron Vice President and Secretary Ryder System, Inc.

980 FEDERAL TRADE COM ISSIOK DECISIONS 90 F.

ADVISORY OPINIONS Modular housing, meeting certain home construction standards, is not a "consumer product" under the terms of section 101(1); and a mobile home manufacturer who simply passes on warranties offered by the manufacturers of equipment installed in a mobil home is not a "warrantor under the terms of section 1l0m of the Magnuson-Moss Warranty Act (15 V. C. 2301 et seq. (File No. 773 7013). (42 F. R. 37440). Advisory Opinion Letter July 13 , 1977 Dear Mr. Miler:

This is in reply to your request of September 13, 1976, for an advisory opinion concerning Sections 101(1) and 1l0(!) of the Magnuson-Moss Warranty Act, 15 U. C. 2301 et seq. as they apply to factory-built housing. Your request takes the form of three questions, but because the first one is compound in nature, the Commission has dealt with it as two separate inquiries. Therefore, the questions involved in your request are as follows:

(1) Is a modular house, excluding such items of equipment as airconditioners, furnaces, and water heaters, a "consumer product" within the meaning of Section 101(1) of the Magnuson-Moss Warranty Act' (2) Does the classification of a modular house under Section 101(1) of the Magnuson-Moss Warranty Act in any way turn upon whether it is delivered to a real property foundation as a completed structure or in component parts? (3) Does the classification of a modular house under Section 101(1) of the Magnuson-Moss Warranty Act in any way turn upon whether it is sold first to a builder or instead is sold directly to an ultimate consumer.

(4) Is the manufacturer of a mobile home a "warrantor" for purposes of Section 1l0(!) of the Magnuson-Moss Warranty Act of such items of equipment as air-conditioners, furnaces, and water heaters if the mobile home manufacturer simply "passes ADVISORY OPINIONS 981 " the written warranty given by the manufacturer of the equipment and indicates to buyers that such equipment is covered by a manufacturer s warranty? The Commission has carefully considered the matters set forth your letter. It is the Commission s conclusion that: (1) A modular house which meets one of the sets of uniform home construction codes set forth in the appendix to this letter or a construction standard established by a state for modular homes, as distinct from mobile homes as they are defined by the state, is real property and should, therefore, be excluded from the Section 101(1) definition of "consumer product". The sets of uniform codes are widely used in the construction of conventional, "stick-built" homes, which are real property. These codes are usually the basis for any distinct state modular housing codes. Thus, a factory built house which satisfies one of these sets of codes or a separate state modular code is essentially of the nature of real property and should, therefore, be excluded from coverage of the Act. On the other hand, a factory built dwelling that fails to satisfy one of the specified sets of codes or a separate state modular code must comply with the requirements of the Act.

(2) Whether a modular house is delivered to a foundation site as a completed structure or in component parts is irrelevant to the determination that it is or is not a consumer product under Section 101(1) of the Magnuson-Moss Warranty Act. The essential question is the nature of the finished product, not the location of its final assembly. If a manufactured dwelling satisfies one of the sets of uniform codes in the appendix or a state modular code, it is real property for purposes of the Act. If it fails to satisfy one of the sets of codes or a state modular code, it falls within the scope of Section 101(1) as a consumer product. (3) Whether a modular house is sold first to a builder or instead to an ultimate consumer is irrelevant to the determination that it is or is not a consumer product under Section 101(1) of the Magnuson-Moss Warranty Act. The fundamental question is again the nature of the dwelling sold, not the identity of the initial purchaser. If a structure is personal property, normally used for personal, family, or household purposes, it is a consumer product under Section 101(1) regardless of who first purchases it from the manufacturer.

90 F.

(4) A manufacturer of mobile homes who simply passes on a written warranty given by the manufacturer of equipment installed in a mobile home and indicates to buyers that such equipment is covered by a manufacturer s warranty is not a warrantor under Section 110(1) of the Magnuson-Moss Warranty Act. The Commission answered this question previously in Section 700.4 of the "Proposed Interpretations" of the Act, 41 Fed. Reg. 34,654 (August 16, 1976). Section 700.4 applies to all consumer products. This includes all consumer products sold with mobile homes, which are themselves consumer products (See Implementation and Enforcement Policy, Section 2, 40 Fed. Reg. 25,721 (June 18, 1975)), and those consumer products sold with modular homes and traditional real property structures. By direction of the Commission.

Appendix The Commission has concluded that a modular house which satisfies anyone of the following home construction standards is real property and should, therefore, be excluded from the Maguson-Moss Warranty Act definition of "consumer product" (1) The codes published by Building Offcials and Code Administrators (BOCA) and the National Fire Protection Association (NFPA): (a) BOCA Basic Building Code-1975 (b) BOCA Basic Industrialized Dwelling Code-l 975 (c) BOCA Basic Mechanical Code-1975 (d) BOCA Basic Plumbing Code-1975 (e) National Electrical Code-NFPA 70-1975. (2) The codes published by the Southern Building Code Congress (SBCC) and the NFPA (a) Standard Building Code- 1976 (b) Standard Gas Code-1976 (c) Standard Mechanical Code-1976 (d) Standard Plumbing Code-1975, with 1976 revisions (e) National Electrical Code-NFPA 70-1975. (3) The codes published by the Int€rnational Conference of Building Officials (ICBO), the Int€rnational Association of Plumbing and Mechanical Offcials (IAMPO), and the NFP A (a) Uniform Building Code-1973 (b) Uniform Mechanical Code-1975 (c) ational Electrical Code-NFPA 70-1975 (d) Uniform Plumbing Code-1973 (IAMPO).

ADVISORY OPINIONS 983 (4) The codes jointly published by BOCA, SBCC, ICBO, the American Insurance Association. and the NFP A:

(a) One and Two-Family Dwellng Code-1975 5. (b) National Electrical Code-70-197 90 F.

Proposed marketing agreement between state association of chiropractors and mattress manufacturer (File No. 7337014). Advisory Opinion Letter July 19, 1977 Dear Mr. Smith:

This is in response to your letter dated October 22, 1976, as supplemented by a letter dated March 8, 1977, requesting an advisory opinion concerning a proposed agreement between the North Carolina Chiropractic Association, Inc. (NCCA), and WRD Associates, Inc.

According to the information you have submitted, WRD Associates has patented the design of a mattress which it proposes to make available to consumers by the placement of orders directly with WRD, the manufacturer-supplier. NCCA members would make literature promoting the mattresses and order forms available in their offces, and an NCCA member s signature would be required on each order received by WRD. A commission on each sale would be paid to the NCCA chiropractor from whose offce the order originated, the NCCA itself, and a yet-to-be-formed philanthropic organization promoting educational and scientific work in the field of chiropractic medicine. All sales literature would be approved in advance by the NCCA, and a disclosure of the commission program would be included in all sales literature promoting the mattresses. In addition, the NCCA and its members would have exclusive rights to promote the sale ofWRD mattresses in North Carolina as long as the Association maintains sales at the rate of at least six mattresses per year per chiropractic physician.

Given the nature of the chiropractor-patient relationship, extreme care must be exercised in order that consumer deception does not result. Primarily, there would have to be a clear and conspicuous disclosure of the relationship between the NCCA and WRD on all sales literature and forms used in connection with the sale of the mattresses. Such a disclosure should, at a minimum, conspicuously and clearly reveal that the NCCA and its member chiropractors earn commissions on the sale of each mattress, that they have contracted to be exclusive sales agents for the mattresses in North Carolina, and ADVISORY OPINIONS 985 that this exclusive agency is contingent upon a rate of sale of at least six mattresses per year by each chiropractic physician. The contract between WRD and the NCCA should be amended to require that the promotional literature containing the disclosures actually be given to every prospective purchaser. The proposed disclosure in your letter of March 8 1977, falls far short of this standard. In addition, the Commission notes that you have stated that you make no claim that the mattress will ameliorate physical disorders. However.. patients may fairly be expected to view chiropractors as healers rather than salesmen. Accordingly, even where no explicit claim of effcacy is made, the patient may be induced to the belief that a chiropractor is suggesting a mattress purchase as a concomitant to treatment and that the mattresses do in fact have therapeutic or corrective qualities, unless such implications are expressly negated. Therefore, unless the Association has satisfactory and suffcient scientific evidence to substantiate the therapeutic or corrective qualities of these mattresses, if any, it and its chiropractor members should refrain from a program of promoting the sale of such mattresses or should affrmatively disclose in writing to each prospective purchaser that there is no basis to believe that the mattresses wil ameliorate any medical condition. Finally, statements concerning the NCCA's approval of and participation in the sale and promotion of these mattresses should not be made in such a manner as to mislead consumers to the belief that the NCCA has established design standards for mattresses for the correction of physical defects or disorders, or that the WRD mattress has met any such standards.

Please be advised that we have limited our advice to legal issues. The Commission takes no position on any questions of ethics which might be raised by commercial activity of this nature by individual chiropractors or by the Association itself. By direction of the Commission.

90 F.

Microfiche viewing system indexing and grouping product warranties by warrantor, rather than product class, satisfies the Trade Regulation Rule on Pre-Sale Availabilty of Written Warranty Terms 06 CFR 702) (File No. 773 7015). (42 R. 39381).

Advisory Opinion Letter July 28, 1977 Dear Mr. Croissant:

This is in response to your request for an advisory opinion regarding compliance with the Commission s Rule on the Pre-Sale Availability of Written Warranty Terms, 16 C.F. R. 702. You ask whether a microfiche viewing system which indexes and groups product warranties by warrantor, rather than by product class, satisfies Part 702.3(a)(1)(il) of the Pre-Sale Availability Rule. Part 702.3(a)(1)(ii) provides that a seller (retailer) may meet the requirements of the rule by maintaining a binder "or (other J similar system which wil provide the consumer with convenient access to copies of product warranties, 16 C. R. 702. 1(g). The rule permits sellers to index binders according to either product or warrantor. The Commission has carefully considered the matters set forth in your request. It is the Commission s conclusion that a microfiche viewing system which indexes and groups warranties by warrantor, rather than by product class, would satisfy Part 702.3(a)(1)(ii) of the Commission rule, ifthe following conditions are met: (1) Simple, complete instructions for use of the system are posted on each viewer;

(2) Personnel in each selling establishment familiar with the operation of the system are available to assist consumers should the need arise; and (3) The microfiche cards used to display warranties contain only warranty information.

These conditions are similar or identical to the conditions which the Commission set out in its advisory opinions to the National Retail Hardware Association, 41 Fed. Reg. 53472, and Sears, Roebuck Inc., ADVISORY OPINIONS 987 42 Fed. Reg. 15679. Those opinions concerned the use of other microfiche or ultrafiche systems under the Pre-Sale Availability Rule. The requirements of those opinions remain applicable to sellers using microfiche or ultrafiche systems in which warranties are grouped and indexed by product class rather than by warrantor. Your request referred only to microfiche viewing systems. The Commission believes that the differences between microfiche and ultrafiche systems are irrelevant for the purpose of complying with the Pre-Sale Availabilty Rule. Therefore, this opinion is also applicable to ultrafiche systems in which warranties are indexed and grouped by warrantor.

By direction of the Commission.

90 F.

Compliance advisory opinion as to whether three affiiated sellers of correspondence courses have properly determined which former students are eligible for partial tuition refunds under a consent order issued against the firms (88 F. C. 683 Docket No. 8963).

Advisory Opinion Letter September 2, 1977 Gentlemen:

This is to advise you that the Commission has given consideration to your submission under cover of your letters of May 17, and June 29 1977, of questionnaires which you have sent out pursuant to the order in the above referenced matter and the determinations you have made with respect thereto regarding eligibilty for tuition refund as prescribed by said order. In accordance with said order you have submitted said questionnaires for review by the Commission and an advisory opinion as prescribed in Section 3. 61(d) of the Commission s Rules of Practice.

Except as noted below, the Commission has determined that your submission represents compliance with the applicable order provisions regarding eligibility of former Lafayette Academy students for partial tuition refunds.

Four completed questionnaires (Appendices 1-4) which you determined to be not payable contained, in response to Question 7 , a multiple answer by the student as to why he or she failed to complete the course or failed to seek employment. In these circumstances, where one answer would qualify the former student for eligibility under the Commission s order even though non-qualifying answers were also provided, the Commission is of the opinion that these claims should be honored.

Fourteen questionnaires (Appendices 5-18) which you determined to be not payable contained narrative responses to Question 7 which suggest that the students' failure to complete or to job-search was reasonably related to the suffciency or quality of the training or job demand as provided for in subparagraphs 5(b)(2) or 5(c) of Part II. The Commission believes that these claims should also be honored. ADVJSORY OPINIONS 989 988 Decision and Order A group of six questionnaires (Appendices 19-24) were from students who had completed their respective courses, had sought employment but had not obtained employment in the relevant occupations. The Commission is of the opinion that these responses meet the criteria for eligibilty contained in the Commission s order and these former students are therefore eligible for refund. In addition, four former students (Appendices 25-28) by their questionnaires advised that they did not complete their courses because they did not receive necessary study materials or tests from your organization. The Commission s view is that failure to receive such course materials fairly relates to the suffciency or quality of the training, and that these former students are eligible for refund. Finally, three former students which you have determined to be not eligible (Appendices 29-31) stated that they had failed to complete their particular courses for the reason indicated in item 7j of the questionnaire: "I decided that the course would not help me get a job." This response, in the Commission s view, relates to the suffciency or quality of the training and/or job demand. Therefore, these students should be determined to be in the eligible class. It is the opinion of the Commission, based upon the information furnished that with the exceptions noted hereinabove, your eligibilty determinations under Part III, paragraph 5 of the Commission order represent compliance with that provision to the extent that your obligations under other order provisions have been fulfilled. This opinion is not intended to apply to any other duties or obligations imposed upon you by the order other than your responsibilty under Part III to make initial determinations as to who constitutes eligible class members for purposes of the required tuition refunds.

The student questionnaires are being returned to you under separate cover.

By direction of the Commission.

90 F.

Notice required by Trade Regulation Rule Concerning Preserva. tion of Consumers' Claims and Defenses (16 CFR 433) must be inserted in the consumer credit contract at the time it is taken or received by the seller. Affxing the Notice immedi. ately prior to negotiation to a third party is unacceptable (File No. 783 7001).

Advisory Opinion Letter October 27 , 1977 Dear Mr. Bemesderfer:

This is in response to your September 15, 1977 request for an advisory opinion regarding compliance with the Trade Regulation Rule concerning Preservation of Consumers' Claims and Defenses, 16 R. Part 433.

Specifically, your request pertains to the location and timing of the required Notice. The Rule declares it an unfair or deceptive act or practice to "take or receive a consumer credit contract which fails to contain" the Notice, 16 C. R. Section 433.2(a). The answers to the four questions posed in your letter are implicit in the language of the Rule.

Whether or not a contract properly contains the Notice turns upon whether it is a legally enforceable term under state law at the time the contract is taken or received. As a general matter of state law any term of a contract must be agreed upon by both parties, as ordinarily evidenced by a document the parties execute. This general principle of contract law suggests that it would be highly unlikely that any consumer could enter into a contract governed by the Rule without receiving or having knowledge of the Notice as one of the terms of the underlying contract.

The Commission specifically addressed your third question in its recent denial of petitions for exemption by the National Retail Merchant Association and the American Retail Federation, 42 F. 46509 et seq. (September 16, 1977). It rejected the concept of affxing the Notice immediately prior to negotiation to a third party rather than at the time of execution. In its denial the Commission reaffirmed the Rule s requirement that the Notice be inserted in the consumer credit contract at the time it is taken or received by the ADVISORY OPINIONS 991 seller. On balance, the Commission concluded that incorporation at the time of making was the only certain means of protecting the consumers' rights, 42 F. R. 46512.

The response to your third question also answers the fourth question.

Finally, you suggest that two-party open end consumer credit contracts have not previously been subject to the Rule s requirements. In fact, the Rule has applied to two-party open end consumer credit contracts since May 14, 1976, although such contracts have been exempted from compliance with the Rule until October 31, 1977.

By direction of the Commission.