[1][2] Fonzie's old flame Pinky Tuscadero (Roz Kelly) returns, and the couple starts to rekindle their relationship.

Officer Kirk has been appointed acting sheriff, and his first task is to run what he considers to be hoodlums out of town—and Fonzie is on his list.

Richie, Potsie, and Ralph are designing a time capsule for a project, and put it in a vault at Howard's hardware store.

Meanwhile, Fonzie tries to find work for his well-meaning but clumsy cousin Angie (Charles Galioto), but he fails at every job.

Richie, Joanie, and the gang prepare to throw a party for Marion in honor of hers and Howard's wedding anniversary.

But Fonzie gets some disappointing news when he finds that since he was a night school student, he wouldn't be allowed to participate in the graduation commencement ceremony.

Feeling like she's being treated as a little kid, Joanie jumps at the chance when she is invited to be initiated into a troublesome gang called the Red Devils.