Faced with the prospect of life in a group home, Ryan decides to run away from Newport, but Seth and Marissa convince him to stay and hide in a vacant building project. Jimmy discusses his recent financial woes with Kirsten, and she offers a solution. After Luke witnesses a close encounter between Marissa and Ryan, he confronts Ryan and a fight breaks loose. Ryan's presence in Newport is exposed in a big way, and two arrests are made.

Sandy comes to Ryan's rescue once again, after he has a difficult stay in Juvenile Hall. Seth makes Kirsten aware of his anger over Ryan's situation, and Kirsten makes a compromise. Ryan's mother, Dawn, makes a surprise visit to Newport, and things don't go quite as she and Ryan may have planned. The monetary secret involving Julie, Jimmy, Kirsten and Sandy comes to a head.

It's time for the annual Cotillion ball. Cherished by many, hated by most, it's the time when Newport's finest young ladies enter society. More information about Jimmy's business trouble comes to light, and Kirsten's loan to Jimmy is not happy news for Sandy.

Ryan takes a job at the Crab Shack diner. A co-worker at the diner might mean bad news for the Newport kids. Ryan asks Marissa out on a date. Sandy attempts to help Jimmy sort out his life, and gives him some bad news. Julie reveals a long-held secret to Kirsten. Disaster strikes at another one of Holly's parties.

Kirsten's father, Caleb Nichol, comes for a visit along with his new girlfriend, Gabrielle. 24-year-old Grandma Nichol has arrived. Kirsten finds her job in jeopardy, while Sandy considers making a change. Much to Ryan's disappointment, Luke decides he wants a second chance with Marissa... but who will Marissa choose? Summer makes the moves on Seth, who wonders if her feelings are real.

The Newport kids plan an end-of-summer trip down to Tijuana, Mexico (aka "T.J."). Jimmy has plans of his own, which don't sit well with Marissa. Sandy gets a new job, which Kirsten can't understand. Summer, Seth, Ryan and Marissa find themselves in a strange place together. Jimmy takes it too far. Disaster strikes one of the O.C. kids.

Everyone is back home in Newport, and Marissa is recovering. Julie points her finger at Ryan and forbids him from seeing Marissa, who does not appreciate the help. Sandy starts his new job, but finds himself surprised by the case work. Kirsten finds herself surprised by Sandy's new co-worker. Ryan enrolls at his new school, with conditions. Julie gets an intervention, and Jimmy gets a new roommate.

Back to school for the O.C. kids. No one really wants to be there, except for the gossips. Ryan doesn't feel like he fits in at his new school, and Luke doesn't make the situation any better. Sandy accepts a case at his new job, a case that will test his relationship with Kirsten and her father. Anna and Seth hatch a plan. Marissa chooses her man.

Couples are plentiful in 'The O.C.' It is a night of firsts. Now that they are free to love one another, Ryan and Marissa plan their first official date. Kirsten sees her father with a new woman, and fears Sandy has found a new woman of his own. Seth takes matters into his own hands with a girl, and is taken by another girl.