I have a studio policy that is nearly this in depth, though slightly less negative sounding. This person has obviously been teaching much longer than I and has had some experiences that shaped and molded that policy. I imagine mine may evolve over time. I have some of the same policies he has, though I'll have to consider adding that intoxicated one.

Maryruth, I'd be happy to email you my studio policy if you didn't find many of them online. I don't put my whole policy online, though that's not a bad idea. Perhaps that will be a Friday project for me.
As for his rates being too low, I don't think there isn't one "correct" amount for a piano teacher, though I've seen lots of threads on this board that suggest people feel otherwise. Rates are determined by cost of living in your area, the demand for piano teachers, the supply of students, the going rate for teachers in your area, the level of your training, and your years of experience. He has a masters degree, but lives in a relatively small community so his average half hour rate (just around $15, when you calculate out for the school year) is probably par for his community. It looks like his town is a whopping five miles across at the widest point. That's a small town!