Michigan Laws on Short Sales

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					          MICHIGAN
LAWS, RULES AND REGULATIONS
         GOVERNING
   PROPRIETARY SCHOOLS




 MICHIGAN DEPARTMENT OF ENERGY, LABOR & ECONOMIC GROWTH
           Proprietary School Unit
           Victor Office Center, 2nd Floor, 201 N. Washington
           Lansing, Michigan 48913

           Telephone: 517.373.6774
           Fax: 517.373.2759




                         Rev. 04/14/10
        Cover Explanation to the Michigan Laws, Rules and Regulations Governing Proprietary Schools

                                      NOTICE TO THE PUBLIC
Executive Order 1996-12 (December 19, 1996) transferred all of the State Board of Education “statutory powers,
duties, functions and responsibilities as relates to the Michigan Laws, Rules and Regulations Governing
Proprietary Schools to the State Superintendent of Public Instruction.” The order further stated that the “State
Board of Education shall retain its’ policy making authority with regard to these statutory provisions by
determining the policies, if any, on which the administration of these provisions shall be based.”

The administrative statutory powers, duties, functions and responsibilities of the Superintendent of Public
Instruction are set forth in provisions of the Michigan Compiled Laws regarding the administration of
postsecondary services. The administrative statutory powers, duties, functions and responsibilities include:

    1. MCL 388.1014a regarding the deposit and maintenance of records of non-operating educations agencies;
    2. MCL 395.101-102 regarding the issuance, renewal, and revocation of temporary and permanent
       proprietary school licenses;
    3. MCL 395.102a(2) regarding the receipt of reports and the collection of fees from proprietary schools;
    4. MCL 395.102a(3) regarding the exercise of jurisdiction and control over proprietary schools
    5. MCL 395.102b regarding the receipt of evidence of surety and indemnification from proprietary schools;
    6. MCL 395.123(6) regarding the authority to adjust fee schedules for solicitor permits for private schools;

Executive Order 1999-12 (October 1999) transferred those same previous State Board of Education statutory
powers relating to the Michigan Laws, Rules and Regulations Governing Proprietary Schools from the
Superintendent of Public Instruction to the Department of Career Development.

The attached laws, rules and regulations document developed under the authority of the State Board of Education
prior to Executive Orders 1996-2 (December 19, 1996) and 1999-2 (October 1999) remains in effect. However,
when reading these laws, rules and regulations, please keep in mind the following:

    1. Any reference to the “Superintendent of Public Instruction” should be substituted with the “Director of
       the Department of Labor & Economic Growth.”
    2. Any reference to the “Department of Education” should be substituted with the “Department of Labor &
       Economic Growth.”

NOTE: The two Executive Orders, mentioned above, do not affect the State Board of Education’s policy-making
authority.

The Executive Order 2003-18 (October 2, 2003) transferred the authority from the “Department of Career
       Development” to the “Department of Labor and Economic Growth.”

By Executive Order 2008-20 (October 27, 2008), the Department of Labor and Economic Growth was renamed
       Department of Energy, Labor and Economic Growth (DELEG).

By 2009 PA 212,the Proprietary School Act, MCL 395.101 et seq, was revised to provide the DELEG with direct
       authority over the licensing of proprietary schools.

Hence, all such historical reference of the Department of Education or the Department of Career Development
       must be referred to as the Department of Energy, Labor and Economic Growth.
                                      TABLE OF CONTENTS
             PRIVATE TRADE SCHOOLS, BUSINESS SCHOOLS, AND INSTITUTES
                                 Act 148 of 1943

395.101 Proprietary school; temporary permit or license; duration; fee; renewal; revocation; granting temporary
                permit or license to operate proprietary school in conjunction with another business or
                commercial enterprise prohibited; sale of goods produced or services provided by student
                enrolled in educational program.
395.101a Short title; definitions
395.102 Issuance of license; conditions; temporary permit to operate proprietary school; proposal; contents;
                duration of temporary permit; renewal.
395.102a Inspection of proprietary schools; rules; reports; records; fees; jurisdiction and control over proprietary
                schools and solicitors.
395.102b Evidence of surety; bond; amount; rules; expiration of surety; proof of renewal; failure to submit
                evidence of surety; applicability of section.
395.102c Written policy for complaints filed by students.
395.103 Violation of act as misdemeanor; penalty; limitations.

                         PRIVATE TRADE SCHOOLS, BUSINESS SCHOOLS,
                         CORRESPONDENCE SCHOOLS, AND INSTITUTES
                                        Act 40 of 1963

395.121Definitions.
395.122Solicitor’s permits; requirement; application, contents.
395.123Solicitor; permit required; rules; solicitation for specifically listed school; knowledge of student financial
               aid programs; knowledge and information required; representation of more than 1 school;
               application for permit; surety bond; withdrawal; notice; annual fee; disposition, use, and
               adjustment of fee; expiration of permit.
395.124Solicitor’s permits; revocation; contracts; violation of act, misdemeanor.
395.125Repeal.

                                       HOME SOLICITATION SALES
                                             Act 227 of 1971

445.111Definitions.
445.111a       Telephonic solicitation using recorded message prohibited.
445.112Right of buyer to cancel home solicitation sale; time; notice of cancellation; restriction on right to cancel;
               sale subject to debtor’s right to rescind.
445.113Written agreement or offer to purchase; contents; form; cancellation.
445.114Tender of payments or goods to buyer; failure to tender goods; effect of noncompliance.
445.115Demand by seller for return of goods; care and availability of goods; effect of failure to demand return of
               goods; compensation for services performed.
445.116Refunds or penalties as set off or defense.
445.117Action for collection of home solicitation sale contract.

                                         ADMINISTRATIVE RULES

Proprietary Schools      R 390.561–R 390.569
Solicitors for Private Schools R 340.471–R 340.4793
             PRIVATE TRADE SCHOOLS, BUSINESS SCHOOLS, AND INSTITUTES
                                 Act 148 of 1943

AN ACT to provide for the regulation and licensing of proprietary schools in the state; to require surety;
 to provide for collection and disposition of fees; and to prescribe penalties for the violation of this act.
                               The People Of The State Of Michigan Enact

        395.101 Proprietary school; temporary permit or license; duration; fee; renewal;
revocation; granting temporary permit or license to operate proprietary school in conjunction
with another business or commercial enterprise prohibited; sale of goods produced or services
provided by student enrolled in educational program.
        Sec. 1. (1) A person shall not operate a proprietary school in this state without a temporary
permit or license from the department under this act. The department shall prescribe the form of license
and temporary permit.
        (2) A license issued under this act to a proprietary school that is accredited by a national or
regional accrediting agency recognized by the United States secretary of education is valid for 3 years.
A license issued under this act to any other proprietary school is not valid for more than 1 year. A
proprietary school that is issued either a 1-year license or a 3-year license shall pay an annual license fee
set by the department under section 2a(2). The department may renew the license of a person that
continues to comply with this act and the rules promulgated under this act.
        (3) The department may revoke a license granted under this act at any time if, in the judgment of
the department, the person to which the license is issued is not complying with any applicable law or the
rulings of the department.
        (4) Except as provided in subsection (5), the department shall not grant a temporary permit or a
license to operate a proprietary school as part of, or in conjunction with, another business or commercial
enterprise that utilizes or sells goods or services produced by students.
        (5) A proprietary school may sell goods produced or services provided by a student enrolled in
an educational program operated by a proprietary school, and the department may not refuse to grant a
temporary permit or license to a proprietary school if all of the following are met:
        (a) The program includes classroom study and practical training.
        (b) Any practical training included in the program is supervised by a member of the faculty.
        (c) It is an integral part of the program that the student engage in producing the goods or
providing the services as part of his or her practical training. The school shall clearly disclose to the
student in writing before he or she enrolls in the program that the school intends to sell any goods or
services produced by the student as part of his or her practical training. The school shall include this
disclosure in a signed enrollment agreement between the school and the student.
        (d) Any customer purchasing goods produced or services provided by a student in the program is
provided written notification that the individual producing the goods or providing the services is a
student of the school.
        (e) Money from the sale of the goods or services is used solely to support the school.
        (f) The school does not charge a student a monetary penalty or increase his or her program hours
beyond the number approved by the department if he or she does not attend any practical training, or
require a student to recruit purchasers of the goods and services, unless that obligation is clearly
disclosed to the student in writing before he or she enrolls in the program.
       History: 1943, Act 148, Imd. Eff. Apr. 14, 1943 ;-- CL 1948, 395.101 ;-- Am. 1949, Act 258, Eff. Sept. 23, 1949 ;--
Am. 1967, Act 210, Eff. Nov. 2, 1967 ;-- Am. 1983, Act 60, Imd. Eff. May 20, 1983 ;-- Am. 2009, Act 212, Imd. Eff. Jan. 4,
2010

        395.101a Short title; definitions.
        Sec. 1a. (1) This act shall be known and may be cited as the "proprietary schools act".
        (2) As used in this act:
        (a) "Department" means the department of energy, labor, and economic growth.
        (b) "Person" means an individual, partnership, corporation, limited liability company,
association, organization, or other legal entity.
        (c) "Proprietary school" means a school that uses a certain plan or method to teach a trade,
occupation, or vocation for a consideration, reward, or promise of any kind. Proprietary school includes,
but is not limited to, a private business, trade, or home study school. Proprietary school does not include
any of the following:
                (i) A school or college possessing authority to grant degrees.
                (ii) A school licensed by law through another board or department of this state.
                (iii) A school maintained or a program conducted, without profit, by a person for that
person's employees.
        History: Add. 1983, Act 60, Imd. Eff. May 20, 1983 ;-- Am. 2009, Act 212, Imd. Eff. Jan. 4, 2010

        395.102 Issuance of license; conditions; temporary permit to operate proprietary school;
proposal; contents; duration of temporary permit; renewal.
        Sec. 2. (1) The department shall not issue a license under this act unless the license applicant has
operated under a temporary permit from the department in a manner satisfactory to the department and
the department has approved the method and content of the advertising, the standards and the methods
of instruction, the personnel, and the operating and instructional practices of the school.
        (2) The department may grant a temporary permit to operate a proprietary school based on a
written proposal submitted in the manner and form prescribed by the department. The proposal shall
include plans for facilities, instructional procedures, personnel, business standards, and operating and
instructional practices that comply with this act and with rules promulgated under this act. A temporary
permit issued under this act is not valid for more than 1 year. The department may renew the temporary
permit of a person that continues to comply with this act and the rules promulgated under this act.
       History: 1943, Act 148, Imd. Eff. Apr. 14, 1943 ;-- CL 1948, 395.102 ;-- Am. 1949, Act 258, Eff. Sept. 23, 1949 ;--
Am. 1983, Act 60, Imd. Eff. May 20, 1983 ;-- Am. 2009, Act 212, Imd. Eff. Jan. 4, 2010

        395.102a Inspection of proprietary schools; rules; reports; records; fees; jurisdiction and
control over proprietary schools and solicitors.
        Sec. 2a. (1) The department shall provide for adequate inspection of all proprietary schools. The
department shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, and employ the personnel necessary to administer this act. A proprietary school shall
submit reports required by the department and shall make available to authorized representatives of the
department all records pertaining to the instructional program of the school or to any individual student
or enrollee.
        (2) The department shall set and collect fees for licenses, temporary permits, and renewals issued
under this act. The fees shall be used solely for administrative expenses incurred under this act.
        (3) The department shall exercise jurisdiction and control over proprietary schools and solicitors
for proprietary schools consistent with this act and 1963 PA 40, MCL 395.121 to 395.125.
        History: Add. 1949, Act 258, Eff. Sept. 6, 1949 ;-- Am. 1983, Act 60, Imd. Eff. May 20, 1983 ;-- Am. 2009, Act
212, Imd. Eff. Jan. 4, 2010

        395.102b Evidence of surety; bond; amount; rules; expiration of surety; proof of renewal;
failure to submit evidence of surety; applicability of section.
        Sec. 2b. A proprietary school shall provide the department with evidence of surety conditioned to
provide indemnification to a student suffering loss because of inability to complete an approved course
or program of study due to the closing of the proprietary school. The surety may consist of a bond, the
amount of which shall be determined according to rules promulgated by the department. Surety shall
expire on June 30 following the date of issuance and the proprietary school must submit proof of
renewal to the department before the date of expiration. Any failure to submit evidence of surety
invalidates a license to operate a proprietary school. This section does not apply to a proprietary school
with a license issued under this act before November 2, 1967.
        History: Add. 1967, Act 210, Eff. Nov. 2, 1967 ;-- Am. 1983, Act 60, Imd. Eff. May 20, 1983 ;-- Am. 2009, Act
212, Imd. Eff. Jan. 4, 2010

       395.102c Written policy for complaints filed by students.
       Sec. 2c. A proprietary school licensed under this act shall adopt and publish a written policy that
allows students to file a complaint with the department for any violation of this act or rules promulgated
under this act.
        History: Add. 2009, Act 212, Imd. Eff. Jan. 4, 2010

        395.103 Violation of act as misdemeanor; penalty; limitations.
        Sec. 3. (1) In lieu of revocation under section 1(3), the department may assess an administrative
fine against a proprietary school of not more than $1,000.00 for a violation of this act or rules
promulgated under this act. However, the department may not assess administrative fines under this
subsection against a proprietary school that in the aggregate are more than $5,000.00 for multiple
violations of this act or rules promulgated under this act that arise from the same transaction.
        (2) A proprietary school that violates this act and has its license revoked, or that operates in this
state without a license, is guilty of a misdemeanor punishable by a fine of not more than $10,000.00, or
imprisonment for not more than 1 year, or both.
         History: 1943, Act 148, Imd. Eff. Apr. 14, 1943 ;-- CL 1948, 395.103 ;-- Am. 1983, Act 60, Imd. Eff. May 20, 1983
;-- Am. 2009, Act 212, Imd. Eff. Jan. 4, 2010
                        PRIVATE TRADE SCHOOLS, BUSINESS SCHOOLS,
                        CORRESPONDENCE SCHOOLS, AND INSTITUTES
                                       Act 40 of 1963

AN ACT to authorize private trade schools, business schools, correspondence schools and institutes to
solicit students in this state; to provide for the issuance of permits to solicitors; to prescribe the powers
and duties of the superintendent of public instruction; to provide penalties for violations of this act; and
                                    to repeal certain acts and parts of acts.
                                 The People Of The State Of Michigan Enact

        395.121 Definitions. [M.S.A. 15.633(1)]
        Sec. 1. As used in this act:
        (a) "Superintendent" means the superintendent of public instruction.
        (b) "School domiciled in this state" means a private trade school, business school,
correspondence school or institute licensed under Act No. 148 of the Public Acts of 1943, as amended,
being sections 395.101 to 395.103 of the Compiled Laws of 1948, or incorporated under Act No. 327 of
the Public Acts of 1931, as amended, being sections 450.1 to 450.192 of the Compiled Laws of 1948.
        (c) "School domiciled outside of this state" means a private trade school, business school,
correspondence school or institute located outside of this state and organized to give instruction in any
form or manner in any trade, occupation or vocation for a consideration, reward or promise of whatever
nature, but not a school possessing authority to grant baccalaureate degrees.
        (d) "Solicitor" means a person or agent 18 years of age or over representing a school located
within or outside of this state who personally attempts to procure students, enrollees or subscribers at a
place or places other than the office or place of business of the school.
       History: 1963, Act 40, Eff. Sept. 6, 1963;--Am. 1972, Act 35, Imd. Eff. Feb. 19, 1972.

        395.122 Solicitor's permits; requirement; application, contents. [M.S.A. 15.633(2)]
        Sec. 2. Solicitor's permits are required for solicitors representing schools domiciled in this state,
or schools domiciled outside of this state which have been authorized by the superintendent to solicit
students in this state. The authorization may be granted a foreign school upon the submission of an
application form provided for this purpose by the superintendent which shall contain such information to
enable the superintendent to evaluate the instructional program and practices of the school as well as its
promotional and sales policies.
       History: 1963, Act 40, Eff. Sept. 6, 1963.

395.123 Solicitor; permit required; rules; solicitation for specifically listed school; knowledge of
student financial aid programs; knowledge and information required; representation of more
than 1 school; application for permit; surety bond; withdrawal; notice; annual fee; disposition,
use, and adjustment of fee; expiration of permit. [M.S.A. 15.633(3)]
        Sec. 3. (1) A solicitor shall not personally solicit a prospective student to enroll in any school
unless he or she applies for and obtains a permit from the superintendent, issued under rules
promulgated by the superintendent in accordance with the administrative procedures act of 1969, Act
No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws.
        (2) A solicitor shall not solicit a prospective student to enroll in a school other than a school
specifically listed in the application and the permit.
        (3) A solicitor shall possess knowledge regarding available state and federal student financial aid
programs and shall inform prospective students of their obligations under student financial aid programs
including, but not limited to, loan repayment obligations under federally guaranteed student loan
programs.
         (4) A solicitor who represents more than 1 school shall obtain a permit for each school he or she
represents.
         (5) Each application for a solicitor's permit shall be accompanied by a surety bond in the amount
of $5,000.00. The bond may be continuing and shall be conditioned to provide indemnification to a
student suffering loss as a result of fraud or misrepresentation used in procuring the student's enrollment.
The bond shall be supplied by the school as an individual or a blanket bond covering each of its
representatives in the penal sum of $5,000.00. The liability to be incurred under an individual or blanket
surety bond shall not exceed $5,000.00 in the case of any 1 solicitor. The surety may relieve itself of
liability thereafter and withdraw from the bond upon giving 30 days' notice in writing to the
superintendent.
         (6) An annual fee shall be charged for each solicitor's permit. The fee shall be $300.00 for a
solicitor representing a school domiciled in this state or $500.00 for a solicitor representing a school
domiciled outside of this state. The fee shall be deposited in the state treasury and credited to the
department of education to be used solely for administrative expenses of this act and Act No. 148 of the
Public Acts of 1943, being sections 395.101 to 395.103 of the Michigan Compiled Laws. The fee
amounts established in this subsection may be adjusted by the state board of education. An adjustment
of a fee established under this section shall be the same as the percentage of adjustment made for costs
associated with the licensing provisions of a proprietary school under Act No. 148 of the Public Acts of
1943, as determined annually by the legislature.
         (7) Each solicitor's permit shall expire 1 year from the date of issuance.
          History: 1963, Act 40, Eff. Sept. 6, 1963;--Am. 1983, Act 59, Imd. Eff. May 20, 1983;--Am. 1988, Act 244, Imd.
Eff. July 11, 1988.

395.124 Solicitor's permits; revocation; contracts; violation of act, misdemeanor. [M.S.A.
        15.633(4)]
        Sec. 4. (a) Any solicitor's permit may be revoked by the superintendent upon 10 days' notice and
after a hearing, if the holder of the permit solicits or enrolls students through fraud or misrepresentation.
        (b) All contracts entered into in this state by schools or their solicitors and all promissory notes
or other evidences of indebtedness taken in lieu of cash payments by such schools or solicitors shall be
null and void unless the schools are duly licensed, approved or authorized to solicit prospective students
and unless the solicitors have secured permits as required by this act.
        (c) Any person violating any of the provisions of this act is guilty of a misdemeanor.
        History: 1963, Act 40, Eff. Sept. 6, 1963.

395.125 Repeal. [M.S.A. 15.633(5)]
       Sec. 5. Section 2b of Act No. 148 of the Public Acts of 1943, as added by Act No. 21 of the
Public Acts of 1957, being section 395.102b of the Compiled Laws of 1948, is hereby repealed.
        History: 1963, Act 40, Eff. Sept. 6, 1963.
                                        HOME SOLICITATION SALES
                                              Act 227 of 1971

               AN ACT to prescribe the rights and duties of parties to home solicitation sales.
                              The People Of The State Of Michigan Enact

        445.111 Definitions.
        Sec. 1. As used in this act:
        (a) "Home solicitation sale" means a sale of goods or services of more than $25.00 in which the
seller or a person acting for the seller engages in a personal, written, or telephonic solicitation of the
sale, the solicitation is received by the buyer at a residence of the buyer, and the buyer's agreement or
offer to purchase is there given to the seller or a person acting for the seller. Home solicitation sale
includes a sale arising from a postcard or other written notice delivered to a buyer's residence that
requests that the buyer contact the seller or seller's agent by telephone to inquire about a good or service,
unless a postcard or other written notice concerns a previous purchase or order or specifies the price of
the good or service and accurately describes the good or service. Home solicitation sale does not include
a sale made pursuant to a preexisting revolving charge account, a sale made pursuant to prior
negotiations between the parties at a business establishment at a fixed location where goods or services
are offered or exhibited for sale, a sale of insurance by an insurance agent licensed by the commissioner
of insurance, a sale made pursuant to a printed advertisement in a publication of general circulation, or a
sale of services by a real estate broker or salesperson licensed by the department of consumer and
industry services. Home solicitation sale does not include a sale of agricultural or horticultural
equipment and machinery that is demonstrated to the consumer by the vendor at the request of either or
both of the parties.
        (b) "Fixed location" means a place of business where the seller or an agent, servant, employee, or
solicitor of that seller primarily engages in the sale of goods or services of the same kind as would be
sold at the residence of a buyer.
        (c) "Business day" means Monday through Friday and does not include Saturday, Sunday or the
following business holidays: New Year's day, Martin Luther King's birthday, Washington's birthday,
Memorial day, Independence day, Labor day, Columbus day, Veterans' day, Thanksgiving day, and
Christmas day.
         History: 1971, Act 227, Imd. Eff. Jan. 3, 1972;--Am. 1978, Act 152, Imd. Eff. May 18, 1978;--Am. 1980, Act 108,
Imd. Eff. May 10, 1980;--Am. 1998, Act 126, Imd. Eff. June 10, 1998.

        445.111a Telephonic solicitation using recorded message prohibited. [M.S.A. 19.416(201a) ]
        Sec. 1a. A home solicitation sale shall not be made by telephonic solicitation using in whole or in
part a recorded message.
        History: Add. 1978, Act 152, Imd. Eff. May 18, 1978.

        445.112 Right of buyer to cancel home solicitation sale; time; notice of cancellation;
        restriction on right to cancel; sale subject to debtor's right to rescind. [M.S.A. 19.416(202) ]
        Sec. 2. (1) Except as provided in subsection (5) , in addition to any right otherwise to revoke an
offer, a buyer has the right to cancel a home solicitation sale until midnight of the third business day
after the day on which the buyer signs an agreement or offer to purchase which complies with this act.
        (2) Cancellation occurs when the buyer mails or delivers the notice of cancellation provided for
in section 3(2) or any other written notice, or sends a telegram, to the seller at the address stated in the
notice of cancellation.
        (3) A notice of cancellation or other written notice, if mailed to the seller, is given when it is
deposited in a mailbox properly addressed and postage prepaid.
        (4) A written notice or telegram given by the buyer other than the notice of cancellation need not
take a particular form and is sufficient if it indicates by any form of written expression the intention of
the buyer not to be bound by the home solicitation sale.
        (5) A buyer may not cancel a home solicitation sale if the buyer requests the seller to provide
goods or services without delay because of an emergency, and (a) the seller in good faith makes a
substantial beginning of performance of the contract before the buyer gives notice of cancellation, (b)
the buyer furnishes the seller with a separate dated and signed personal statement in the buyer's
handwriting describing the situation requiring immediate remedy and expressly acknowledging and
waiving the right to cancel the sale within 3 business days, and (c) in the case of goods, the goods cannot
be returned to the seller in substantially as good condition as when received by the buyer.
        (6) If a home solicitation sale is also subject to the debtor's right to rescind certain transactions,
the buyer may proceed either under those provisions or under this section.
       History: 1971, Act 227, Imd. Eff. Jan. 3, 1972;--Am. 1978, Act 152, Imd. Eff. May 18, 1978.

        445.113 Written agreement or offer to purchase; contents; form; cancellation. [M.S.A.
        19.416(203)]
        Sec. 3. (1) In a home solicitation sale, unless the buyer requests the seller to provide goods or
services without delay in an emergency, the seller shall present to the buyer and obtain the buyer's
signature to a written agreement or offer to purchase which designates as the date of the transaction the
date on which the buyer actually signs.
        The agreement or offer to purchase shall contain a statement substantially as follows in
immediate proximity to the space reserved in the agreement or offer to purchase for the signature of the
buyer:
        "You, the buyer, may cancel this transaction at any time prior to midnight of the third business
day after the date of this transaction. See the attached notice of cancellation form for an explanation of
this right."
        (2) The seller shall attach to the copy or cause to be printed on the reverse side of the written
agreement or offer to purchase retained by the buyer a notice of cancellation in duplicate which shall
appear as follows:
                                         "notice of cancellation
                                        (enter date of transaction)


                                                   (date)

                                    __________________________
You may cancel this transaction, without any penalty or obligation, within 3 business days from the
      above date.
      If you cancel, any property traded in, any payments made by you under the contract or sale, and
      any negotiable instrument executed by you will be returned within 10 business days following
      receipt by the seller of your cancellation notice, and any security interest arising out of the
      transaction will be canceled.
      If you cancel, you must make available to the seller at your residence, in substantially as good
      condition as when received, any goods delivered to you under this contract or sale; or you may if
      you wish, comply with the instructions of the seller regarding the return shipment of the goods at
      the seller's expense and risk.
      If you do make the goods available to the seller and the seller does not pick them up within 20
      days of the date of your notice of cancellation, you may retain or dispose of the goods without
       any further obligation. If you fail to make the goods available to the seller or if you agree to
       return the goods to the seller and fail to do so, then you remain liable for performance of all
       obligations under the contract.
       To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or
       any other written notice, or send a telegram to (name of seller) , at (address of seller's place of
       business) not later than midnight on

       ______________________________
                         (date)
          I hereby cancel this transaction.
       ______________________________
                         (date)
                                                         ______________________________
                                                                  (buyer's signature) "

                (3) The notices required by this section shall be in not less than 10-point bold type and
       shall be 2 points larger than the text of the contract. A written agreement or offer to purchase and
       the notice of cancellation attached to the agreement or offer shall be written in the same language
       as that used in any oral presentation which was given to facilitate sale of the goods or services.
       The seller shall enter on the blanks in the notice of cancellation the date of transaction, which is
       the date the buyer signs the written agreement, and the date for mailing the notice of
       cancellation. An error in entering this information shall not diminish the buyer’s rights under
       this act.
                (4) Until the seller has complied with this section, the buyer may cancel the home
       solicitation sale by notifying the seller in any manner and by any means of his or her intention to
       cancel.
                History: 1971, Act 22, Imd. Eff. Jan. 3, 1972;–Am. 1978, Act 152, Imd. Eff. May 18, 1978 .

        445.114 Tender of payments or goods to buyer; failure to tender goods; effect of
        noncompliance. [M.S.A. 19.416(204)]
        Sec. 4. (1) Except as provided in this section, within 10 days after a home solicitation sale has
been canceled or an offer to purchase revoked the seller shall tender to the buyer any payments made by
the buyer and any note or other evidence of indebtedness.
        (2) If the down payment includes goods traded in, the goods shall be tendered in substantially as
good condition as when received by the seller. If the seller fails to tender the goods as provided by this
section, the buyer may elect to recover an amount equal to the trade-in allowance stated in the
agreement.
        (3) Until the seller has complied with the obligations imposed by this section the buyer may
retain possession of goods delivered to him by the seller and has a lien on the goods in his possession or
control for any recovery to which he is entitled.
       History: 1971, Act 227, Imd. Eff. Jan. 3, 1972.

       445.115 Demand by seller for return of goods; care and availability of goods; effect of
       failure to demand return of goods; compensation for services performed. [M.S.A.
       19.416(205)]
        Sec. 5. (1) Except as provided by section 4(3) , if a home solicitation sale has been canceled or
an offer to purchase revoked, a seller may demand the return of goods delivered within 20 days after the
cancellation or revocation. The buyer shall take good care of the goods and shall make the goods
available for return to the seller at the buyer's residence. If the seller fails to demand return of the goods
as prescribed in this subsection, the goods shall become the property of the buyer without obligation.
        (2) If the seller has performed any services pursuant to a home solicitation sale before its
cancellation, the seller is not entitled to compensation.
       History: 1971, Act 227, Imd. Eff. Jan. 3, 1972;--Am. 1978, Act 152, Imd. Eff. May 18, 1978.

        445.116 Refunds or penalties as set off or defense. [M.S.A. 19.416(206)]
        Sec. 6. Refunds or penalties to which the debtor is entitled pursuant to this act may be set off
against the debtor's obligation, and may be raised as a defense to an action on the obligation without
regard to the time limitations prescribed by this act.
       History: 1971, Act 227, Imd. Eff. Jan. 3, 1972.

445.117 Action for collection of home solicitation sale contract. [M.S.A. 19.416(207)]
        Sec. 7. No person may bring any action in any court of this state for the collection of any home
solicitation sale contract without proving that such person was at all times in compliance with this act.
       History: 1971, Act 227, Imd. Eff. Jan. 3, 1972.
                 DEPARTMENT OF ENERGY, LABOR & ECONOMIC GROWTH

                        PROPRIETARY SCHOOLS PROMULGATED RULES

(By authority conferred on the state board of education by sections 2a and 2b of Act No. 148 of the
Public Acts of 1943, as amended, and section 15 of Act No. 287 of the Public Acts of 1964, as amended,
being SS395.102a, 395.102b, 388.1015 of the Michigan Compiled Laws)

R 390.561 Definitions.
        Rule 1. As used in these rules:
        (a) "Accredited schools" means a school which has completed the accrediting procedures and
which has been approved by 1 or more of the nationally recognized accrediting agencies and
associations approved by the United States department of education. The approved accrediting agencies
may include the following:
        (i) Association of accrediting council for independent colleges and schools.
        (ii) Accrediting commission for career schools/colleges of technology.
        (iii) Distance education and training council.
        (iv) Accrediting bureau of health education schools.
        (b) "Act" means Act No. 148 of the Public Acts of 1943, as amended, being S395.101 et seq. of
the Michigan Compiled Laws.
        (c) "Auxiliary classroom" means a facility which is used only for instruction by the proprietary
school and which is located not more than 1 mile from the location at which the proprietary school is
licensed to operate.
        (d) "Board" means the state board of education.
        (e) "Course" means a component of a program in a particular subject area.
        (f) "Department" means the department of education.
        (g) "Full-time equated students" means a student or combination of students enrolled in regular
attendance and receiving a full course of instruction with the total clock hours as prescribed by the
school.
        (h) "License" means the status provided to a proprietary school by the superintendent of public
instruction under the requirement of the act when all conditions have been met satisfactorily by the
school.
        (i) "Permit" means a temporary permit to operate until a license is issued.
        (j) "Program" means instruction, in any form or manner, in any particular trade, industrial,
commercial, or service occupation.
        (k) "Public assembly site" means a site located in a public educational institution or located in a
public meeting area suitable for instruction.
        (l) "School" means a proprietary school as defined in section 1a of the act. "School" does not
include an educational institution or educational training program that is maintained or provided by an
employer, without charge, to its employees or anticipated employees.
        (m) "Surety" means a bond or insurance to provide indemnification to students suffering loss due
to the closing of a school.
        History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC; 1987 MR 1, Eff. Feb. 5, 1987; 1998 MR 12, Eff. Jan. 4,
1999.




R 390.562 Licensing procedure.
         Rule 2. (1) A school shall furnish an application to the department that contains data concerning
curriculum, instruction, facilities, and administration. The department shall evaluate the data.
         (2) An applicant applying for a license shall file, with the department, evidence of surety payable
to the state of Michigan to be used exclusively for indemnification to students suffering loss due to the
closing of the school. The indemnification may take the form of insurance or a bond. An existing school
that is applying for a license or permit shall use its count of current full-time equated students or the
average full-time equated student figure for the preceding 12 months, whichever is greater. A school
enrolling students for the first time may project the full-time equated student figure subject to
readjustment 60 days following the start of the program.
         (3) Housing and facilities shall conform to standards specified by the appropriate local and state
authorities.
         (4) An applicant for a temporary permit shall submit a business plan showing projected revenues
and expenses for the first 3 years of operation. The business plan shall show a plan of action if the
projected revenues are insufficient to operate the school.
         (5) The department shall issue an applicant school a permit for a 12-month period before issuing
a license. A permit authorizes the applicant to offer specific programs at a definite location under the
management as stated on an application. A separate permit is required for each location at which
instruction is offered, except a school may offer instruction at an auxiliary classroom or a public
assembly site without obtaining a separate permit for that location. Schools such as income tax schools
that offer identical programs at multiple locations under the same management for less than 6 months
each year as stated on the application may submit 1 application for all sites and pay 1 fee as required by
R 390.569. The permit expires on the date specified on the permit unless the date is extended, in writing,
by the department, in which case it expires on the date specified in the written extension. The
department shall evaluate the operation of a school under a permit for compliance with the act and these
rules. This sub-rule prohibits the expiration of a permit if a school is involved in a hearing under
sections 71 to 92 of Act No. 306 of the Public Acts of 1969, as amended, being SS24.271 to 24.292 of
the Michigan Compiled Laws.
         (6) The department shall issue a license if an evaluation of the school shows that it has been in
compliance with the act and these rules for the previous 12 months.
         (7) The board may revoke, or not renew, a school's license or permit for 1 or more of the
following reasons:
         (a) Intentional violation of any commitment made in an application for a license or permit.
         (b) Furnishing false, misleading, or incomplete information to the department.
         (c) Violation of any provision of the act or these rules.
         (8) The board shall not revoke a school's license or permit or refuse to renew a license or permit
unless it conducts a hearing under sections 71 to 92 of Act No. 306 of the Public Acts of 1969, as
amended, being SS24.271 to 24.292 of the Michigan Compiled Laws.
        History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC; 1987 MR 1, Eff. Feb. 5, 1987; 1998 MR 12, Eff. Jan. 4,
1999.
R 390.562a Surety.
        Rule 2a. (1) A school shall provide the board with evidence of surety to insure repayment to
students as required by the act.
        (2) If surety, as defined in R 390.561, is terminated, the school's license or permit shall expire if
a surety is not secured to replace the expired surety. Notification, in writing, shall be given by the school
to the department if surety is to expire or be terminated and not replaced.
        (3) A school shall not enroll students following notice of cancellation of surety unless another
form of surety has been provided.
        (4) A surety shall be provided by a school in an amount determined according to the following:
        (a) An accredited school shall provide evidence of surety of not less than $5,000.00 for 1 to 100
full-time equated students, not less than $7,500.00 for 101 to 500 full-time equated students, and not less
than $10,000.00 for 501 to 1,000 or more full-time equated students.
        (b) A non-accredited school shall provide evidence of surety in an amount equal to $200.00 per
student, but not less than $5,000.00.
        History: 1987 MR 1, Eff. Feb. 5, 1987.

R 390.563 Continuation of licenses.
        Rule 3. (1) The department shall renew a school's license each year if a school has not engaged
in any conduct prohibited by these rules and complies with all of the following provisions:
        (a) Meets the standards of operation under which the license was issued.
        (b) Completes the annual special reports required by the department.
        (c) The surety is renewed and, if necessary, adjusted annually.
        (d) The annual fee is paid as prescribed by R 390.569.
        (2) The department shall periodically inspect the school for compliance with these rules
following issuance of the license or permit.
        History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC; 1987 MR 1, Eff. Feb. 5, 1987; 1998 MR 12, Eff. Jan. 4,
1999.

R 390.564 Standards for operation.
        Rule 4. (1) Owners shall have a satisfactory record of business integrity and ethical practices
and shall possess financial resources adequate to fulfill the school's obligations.
        (2) Data relative to the education, training, and experience of the administrative, supervisory, and
instructional staff shall be submitted, on forms provided by the department, for evaluation as to the
competency to instruct or supervise instruction in the subjects assigned. Instructional personnel shall
have backgrounds of appropriate education or appropriate experience in the substantive field which they
are assigned to teach. Instructional personnel who teach in a field requiring a certificate or license shall
possess such a certificate or license.
        (3) Financial records of cash receipts of the school, disbursement, assets, liabilities, and capital,
as they relate to the requirements of law, shall be available for inspection by the department.
        (4) The student's application form and contract shall correspond with the catalog furnished to the
student. Any modification of the student's application and contract, as contained in the catalog, shall be
agreed to, in writing, by all parties. The refund policy shall be stated in the contract.
        (5) Student records, except records of grades, including enrollment data, payment of fees,
attendance, progress, awards, interviews, and placement, shall be maintained for not less than 3 years
following graduation. A student's grade records and transcripts shall be retained in perpetuity by the
school and shall be available upon his or her request. A school that is no longer operating shall turn
over its student records to the board.
        (6) Tuition rates and all other costs shall be furnished to the department and the students. Books,
tools, and other materials purchased by the student shall become his or her property.
       (7) A student shall have the necessary aptitude, prerequisite education or training, and the
physical qualifications required in the occupational field for which he or she is training.
       (8) The class load for instruction shall be consistent with approved educational practices. A
program shall not be offered unless approved by the department.
       (9) Courses of instruction shall extend over a sufficient period to meet standards of trade and
business practices. Outlines of lessons, units, or projects shall be available to the department.
       (10) Equipment and materials shall meet local and state fire, health, safety, and sanitation
requirements.
       (11) A student who satisfactorily completes a program shall be given an appropriate certificate or
diploma.
       (12) A permit or a license may be revoked if the school is not complying with the law.
       (13) A school shall notify the department before a change in location.
       History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC; 1987 MR 1, Eff. Feb. 5, 1987.

R 390.564a Refund policy.
        Rule 4a. (1) A refund policy shall be described in clear, concise language in the contract,
enrollment application, and school catalog. The enrollment contract shall outline the obligations of both
the school and the student.
        (2) A refund policy shall provide the following:
        (a) The tuition and fees paid by the applicant shall be refunded if the applicant is rejected by the
school before enrollment. An application fee of not more than $25.00 may be retained by the school if
the application is denied.
        (b) All tuition and fees paid by the applicant shall be refunded if requested within 3 business
days after signing a contract with the school.
        (c) The policy shall adhere to the refund policies of applicable state, federal, and accrediting
agencies.
        (3) All refunds shall be returned within 30 days.
       History: 1987 MR 1, Eff. Feb. 5, 1987.

R 390.565 School catalogs or comparable publications.
         Rule 5. A catalog or comparable publication shall be available to each student and shall clearly
state all of the following:
         (a) Volume, number, or date of publication. Supplements to catalogs shall be filed with the
department before their dates of effectiveness. All pages in the catalog shall be numbered.
         (b) Name of the school, its governing body, officials, and faculty.
         (c) Calendar of legal and scheduled holidays, vacation periods, and dates of each term or
semester.
         (d) Enrollment dates and entrance requirements for each program.
         (e) Policy relative to absences, leaves, tardiness, make-up work, and interruption for
unsatisfactory work or attendance.
         (f) Grading system and reentrance conditions.
         (g) Student conduct and conditions of probation or dismissal.
         (h) Tuition charges and schedule of fees for student activities, laboratories, rentals, deposits, and
other charges and refunds.
         (i) Course outlines, showing units of instruction, skills to be learned, and approximate clock
hours of instruction in each course.
         (j) Credit allowed for previous education and training.
         (k) If equipment to be furnished by the school and essential to the training is located at a place
other than the school, it shall be so stated in the catalog.
       (l) Whether specific placement assistance is available for enrolled students.
       (m) That a certificate of achievement or diploma is awarded to graduates.
       (n) Address of the central office, if different from the address of the school.
       History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC; 1987 MR 1, Eff. Feb. 5, 1987.

R 390.566 Advertising and recruitment.
         Rule 6. (1) The content of all published literature and advertising, illustrations, diagrams, and
pictures shall convey only true meaning, relationships, and conditions supported by facts and statistics
about the school, its management, instruction, offerings, and opportunities.
         (2) Misrepresentation as to any of the following is prohibited:
         (a) Suitable jobs.
         (b) Probable earnings.
         (c) School facilities.
         (d) Course of instruction.
         (e) Operational policy.
         (f) Management.
         (g) Charges for tuition and fees.
         (h) Available training equipment.
         (i) Qualification of instructors.
         (j) Placement activities of the school.
         (3) Only such persons shall be listed or advertised as members of the staff or faculty as are
regularly employed to give or directly supervise the instruction in 1 or more of the regular subjects in the
school.
         (4) The school shall not use blind advertisements to solicit prospective students nor shall it
advertise in the "help wanted" or other employment column in newspapers or other publications.
Advertising shall be in the name under which the school is licensed.
         (5) A licensed school may advertise that it is licensed by the board under the laws of Michigan,
but it shall not advertise that the school is recommended, endorsed, or approved by the board.
         (6) An officer or employee of the school shall not knowingly induce a student to leave an
educational institution at which he or she is in attendance and shall not induce a student to change his or
her plans when he or she has enrolled in another school and paid a deposit.
       History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC; 1987 MR 1, Eff. Feb. 5, 1987.

R 390.567 Home study schools.
      Rule 7. The standards set forth in these rules apply to home study schools insofar as applicable.
       History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC.

R 390.568 Rescission.
       Rule 8. The rules entitled "Standards for Licensing and Regulation of Private Trade Schools,
Business Schools, and Institutes in Michigan," being R 390.541 and R 390.542 of the Michigan
Administrative Code, and appearing on pages 4012 and 4013 of the 1954 volume of the Code, are
rescinded.
       History: 1954 ACS 55, Eff. Aug. 14, 1968; 1979 AC.

R 390.569 Fees.
        Rule 9. (1) An applicant for a temporary permit shall pay a fee of $1,000.00 for each temporary
permit issued. An out-of-state applicant for a new license shall pay a fee of $400.00 for each new license
issued. The department shall adjust fees annually and index the fees to the Detroit consumer price index,
as published by the department of labor statistics, United States department of labor.
        (2) An applicant for renewal of a license shall pay a fee of $300.00 for each renewal license
issued if a total of 25 or fewer students started a licensed program during the period
July 1 to June 30 immediately preceding the license renewal date or if the school did not offer any
instructional programs consisting of more than 40 hours of instruction. An applicant for a renewal of a
license for a proprietary school that operates 1 or more instructional programs consisting of more than
40 hours of instruction shall pay a license renewal fee based on the following schedule of students who
started licensed programs:
        (a) 26 to 50 students . . . . . . . $500.00.
        (b) 51 to 100 students . . . . . . . 600.00.      (g) 301 to 350 students . . . . 1,100.00.
        (c) 101 to 150 students . . . . . . 700.00.       (h) 351 to 400 students . . . . 1,200.00.
        (d) 151 to 200 students . . . . . . 800.00.       (i) 401 to 450 students . . . . . 1,300.00.
        (e) 201 to 250 students . . . . . . 900.00.       (j) 451 to 500 students . . . . . 1,400.00.
        (f) 251 to 300 students . . . . . 1,000.00.       (k) More than 500 students. . 1,500.00.

The department shall adjust fees annually and shall index the fees to the Detroit consumer price index,
as published by the department of labor statistics, United States department of labor.
        (3) An applicant for renewal of a license shall pay a late payment fee of $50.00 if the license is
not renewed within 30 days after the due date.
        (4) A school that moves to a new location after the initial license was issued shall pay a fee of
$300.00 for approval of each change of location.
        (5) A school that submits a request for approval of a new curriculum to be added to its license
shall pay a fee of $500.00 for approval of each new curriculum.
        (6) A school that submits a request for a change of school name on its license will pay a fee of
$200.00.
        (7) A student who requests a copy of a transcript from a closed school will pay a fee of $15.00.
        (8) The department shall use the fees in sub-rules (1) to (7) of this rule entirely for the
administrative expenses incurred by the department to carry out the act.
        (9) A school or person shall make a payment under this rule by certified check or money order
made payable to the state of Michigan. History: 1987 MR 1, Eff. Feb. 5, 1987; 1998 MR 12, Eff. Jan. 4, 1999.
                                   DEPARTMENT OF EDUCATION

                                   STATE BOARD OF EDUCATION

                               SOLICITORS FOR PRIVATE SCHOOLS

(By authority conferred on the state board of education by section 3 of Act No. 40 of the Public Acts of
1963, being S395.123 of the Michigan Compiled Laws and section 14 of Act No. 287 of the Public Acts
of 1964, being S388.1014 of the Michigan Compiled Laws)

R 340.471 Schools' authority to solicit students.
        Rule 1. A private trade school, business school, correspondence school or institute, hereinafter
referred to as a school, may solicit students, by individual solicitors to whom permits have been granted
by the state board of education, as follows:
        (a) A school located in this state which is licensed under Act No. 148 of the Public Acts of 1943,
as amended, being SS395.101 to 395.103 of the Michigan Compiled Laws, or incorporated under Act
No. 327 of the Public Acts of 1931, as amended, being SS450.1 to 450.192 of the Michigan Compiled
Laws.
        (b) A school located outside of this state which has secured a certificate of compliance from the
state board of education according to R340.473.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.472 Solicitors' permits.
        Rule 2. (1) Upon written application of any private trade school, business school, correspondence
school or institute, a permit may be issued to a solicitor to represent such school licensed or incorporated
as provided in R 340.471(a) or which has received a certificate of compliance under R 340.471(b).
        (2) A solicitor must be of good moral character.
        (3) When soliciting students statements made by solicitors of the school shall not be false or
misleading.
        (4) When soliciting students in Michigan, a solicitor shall have on his person the current permit
issued to him, which shall clearly indicate his name and the name of the school he represents. The
school shall notify the state board of education when the employment of a solicitor is terminated and
notify the solicitor to return his permit to the state board of education.
        (5) Within 10 days of termination of employment the solicitor shall return the permit to the state
board of education. Willful failure to do so constitutes grounds for invalidating solicitor permits held by
the individual or for his securing of future permits.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.473 Certificates of compliance for out-of-state schools.
        Rule 3. (1) An out-of-state school desiring to solicit students in Michigan shall file a written
application on a form provided by the state board of education.
        (2) A certificate of compliance to an out-of-state school to solicit students in Michigan shall be
issued to the school at a specific address in a definite location under a specified management to offer a
specified curriculum. Change in any of 1 of these invalidates the certificate. In such case, or when a
school ceases to operate, the certificate shall be returned to the state board of education with appropriate
explanation of the change in status.
         (3) A certificate of compliance to an out-of-state school to solicit students in Michigan remains
in effect so long as the school observes the law and the rules and regulations promulgated by the state
board of education. A certificate may be revoked if, after written notice and opportunity for a hearing,
the state board of education determines that the school management is not complying with the
provisions of the law or the rules of said board.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.474 Management or governing boards of out-of-state schools.
        Rule 4. (1) In its written application, the management or governing board of a school shall be
identified as a person or persons of integrity in character and business practices.
        (2) The school shall file in writing with the state board of education personnel qualification data
for administrators, directors and other administrative or management personnel employed by the
governing body.
        (3) The financial resources of the management or governing board shall be adequate to the
realization of the announced instructional objectives.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.475 Selection of students by out-of-state schools.
       Rule 5. (1) A student selected for a course shall have the general ability, prerequisite training or
previous experience essential to pursuing a specified course with reasonable assurance of success. A
student shall have the physical and educational qualifications required in the occupational field for
which he is to receive training.
       (2) No officer, employee or agent of a school shall solicit a student to leave an institution in
which he is in attendance, whether a high school, college, university or other trade school, business
school or institute; nor shall he seek to induce a student to change his plans when the student has signed
an enrollment form and paid a registration fee in another school.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.476 School records and tuition rates for out-of-state schools.
        Rule 6. (1) Adequate and complete registration, attendance and achievement records shall be
kept for each student and made available to him or to an authorized representative of the state board of
education upon request.
        (2) Tuition rates shall be filed with the state board of education. Subsequently increased rates
shall not be applied to a student for the term or course in which he is currently enrolled. Rates published
in school literature or any other media shall be in accordance with rates on file with the state board of
education.
        (3) The tuition rates and the refund policy shall be clearly stated on the registration, enrollment
or contract form which the student signs.
        (4) Charges for instructional supplies and equipment apart from the tuition fee shall be specified.
Such supplies and equipment shall become the property of the student on the date of purchase.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.
R 340.477 Instructional practices of out-of-state schools.
        Rule 7. (1) The school shall file with the state board of education instructional personnel
qualification data for all instructional personnel. Instructional personnel shall be competent to instruct
or supervise instruction in the subjects assigned to them.
        (2) The average class and pupil load per teacher shall be consistent with educational practices in
the subject matter field concerned.
        (3) Each course shall be planned to cover the subject adequately, shall be clearly presented, and
treated in accordance with best current knowledge and practice of trade or business standards. Duration
of training shall extend over a period of time sufficient to complete the course material within standards
appropriate to the subject and the requirements of the trade or occupation.
        (4) Outlines in the form of lessons, units, or projects shall be available to the state board of
education for each course offered.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.478 Correctional service of out-of-state schools.
        Rule 8. (1) The school shall file with the state board of education, instructional personnel
qualification data for all people involved in correctional service. Such personnel shall have the ability to
score and constructively criticize examination and other evaluative papers submitted
by students and to direct students involved in overcoming observed deficiencies.
        (2) A correspondence school shall provide for the prompt and accurate correction of papers and
the return to the student.
        (3) Where objective type tests or lessons are employed, adequate provision shall be made for the
accurate correction of such tests by machine or by personal check. Technically competent personnel
shall interpret such scores to the student and indicate further study required.
        (4) If the school employs essay-type or other special tests or assignments not admitting of
objective scoring devices, they shall be corrected and criticized by persons technically competent to
make such corrections.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

R 340.479 Advertising policies of out-of-state schools and solicitors.
        Rule 9. (1) For publicity or advertising purposes, a school or its solicitors shall use the name and
home address of the school as stated in the certificate of compliance.
        (2) A school shall not promise or imply guarantee of placement of students.
        (3) Content of all published literature and advertising, illustrations, diagrams and pictures shall
convey only true meaning, relationships and conditions supported by facts and statistics about the
school, its management, instruction, offerings and employment opportunities of its graduates.
        (4) Only such persons shall be listed or advertised as members of the staff or faculty as are
regularly employed to give or supervise the instruction in 1 or more of the regular subjects in the school.
        (5) Catalogs or informational literature shall clearly state specific information regarding the
prerequisite training requirements for admission to courses and the duration of each course.
        (6) A school shall not solicit students through the "Help Wanted" columns of newspapers or
periodicals or by means of "blind" advertisements.
        (7) A school shall not advertise that it is recommended, endorsed or approved by the Michigan
state board of education.
        (8) Copies of proposed advertising shall be submitted with each application for a certificate of
compliance.
       History: 1954 ACS 51, Eff. Aug. 15, 1967; 1979 AC.

				
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