Jerry you are right, that picture is misleading. In order for that to work the slab would have to end at the foundation wall.

Normally what I see is the slab, and the exterior wall is wood frame. The other thing not in that picture is the spikes I referred to. Picture about a 6" spike driven into the bottom plate, the gap, about 4" and the top of the spike not being driven all the way into the upper plate. The spike head is a couple inches above that second plate. Thus the slab can heave up and down and the wall doesnt move because the bottom plate is sliding up and down on the spikes. Next one I see I will post a picture.

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Paul Kondzich
www.altitudehomeinspection.com