Schwinn cruiser seven - Unknown bike parts -help

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At the rear of the wheel there is a chrome part that moves freely to left and right and a rusty part that sticks out, this is my first Schwinn bicycle and need help to identify the parts.
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I agree with Horsefarmer, a later model Schwinn made overseas. It's not an american made bike, but the good news is that it's perfect to get practice on. Tearing it down, cleaning rust and bearings, relubing and dealing with obstacles. Although it has a lot of rust, the rear hub may be good and shift well with a good cable. I would go through every last part except to take the rear hub apart. It'll make a nice cruiser!
 
The chrome brake arm gets attached to the frame with the clamp hanging there. I have no idea what the other thing is. Maybe part of a stand of some sort, it's not stock.
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