Tired of driving around in Howard's DeSoto, Richie and Potsie buy a car of their own. The car has several problems including an engine that won't run consistently. This causes problems when they try to impress two girls.

Richie and Potsie are invited to Potsie's cousin's stag party. In an attempt to lessen the effects of the alcohol they will consume, they each drink several cartons of milk and a sip of olive oil.

Potsie is staying with the Cunninghams, and he and Richie sneak out to watch a drag race in which Fonzie is involved.

Richie buys tickets to a rock and roll show from Fonzie but has to work at the hardware store when Howard needs to have his tonsils removed. Because he'll be working until 9:00 PM, he won't be able to go to the show, so he asks Fonzie for a refund. Later, Howard tells Richie that he can close the store at 5:00 PM leaving him free to go to the show. He, now, has to ask Fonzie for the tickets back.

Richie and Potsie, in their never-ending effort to get girls, decide that they want to join a gang called the Demons. However, in order to be accepted, they have to perform several dares.

After taking a look at a B+ Potsie got on an exam, Fonzie decides to drop back into school. He asks Richie to do his homework and cheat for him.

Richie and Potsie obtain fake identification cards in order to attend a burlesque show where Ralph says Bubbles McCall takes it all off.

Richie and his girlfriend, Arlene, break up after two weeks of dating. Neither of them have dates for the prom, so they end up going together as friends.

To make some money, Richie, Potsie, Ralph, and Bag form a band. They secure a gig, but Richie and Potsie lose the money (including that of Ralph and Bag) playing poker.