[2] The first part of his term was consumed by the electoral crisis which led to the Denison state by-election in 1980.
[3] He had an otherwise uneventful term before unexpectedly resigning as party leader for "personal reasons" on 10 November 1981—it was later revealed that powerful conservative elements within the Liberal Party had forced him to resign, after his personal life and breakup of his marriage led to concerns about his image.
After the election, Pearsall became Minister for Tourism, National Parks and Recreational Lands, Environment and Licensing.
Following Bingham's retirement from parliament, Pearsall became Deputy Premier, losing the two environment portfolios but picking up Police and Emergency Services, Road Safety and Gaming.
He resigned from parliament on 1 November 1988, announcing that he was moving to the Gold Coast to manage a tourist resort with his private secretary and long-time friend, Peter Sullivan.