The shute is pulled out automatically as you jump by a line (Static line) that is attached to the plane. You will have seen this in films where they attach a line to the rail that runs the length of the plane.
A free fall is when you pull the ripcord that releases the drouge chute, that in turn pulls out the parachute. You free fall from the time you leave the plane until you want to deploy the chute.
FJ I had to smile at your comment about having to wear a chute but not knowing what to do. I went solo in Gliders at 16 and as you know you have to wear a parachute. Well I made the mistake of getting overconfident and ended up in a very violent cloud, had no control and was sure that the glider was going to break up. I sat there for what seemed an eternity and going through my head was, Knees up, pop the canopy, release the belt, then what. Navy rules said that I had to wear the chute as 16, but couldn't go on a course until I was 17. Spot the floor in the logic.
Thats why I went on a course just as soon as I could.