[1][2] With the deadline for payment looming, the gang is still trying to raise the money to save Uncle Ben's Colorado ranch.
With the possibility of his blindness being permanent, Fonzie struggles to come to terms with it; but Richie is determined to make his friend face the situation and revive his morale.
Richie concocts a cover story to tell Lori Beth when he's actually escorting a baton twirler to the fraternity dance.
Everyone except Marion is pleased that she intends to date high school football star Tip Corrigan, until Joanie finds that he is a liar and a cheat.
After Richie is mistakenly arrested for being the "kissing bandit," Fonzie helps him set a trap to expose the real culprit.
When Joanie starts smoking to retain her membership in a club called the Magnets, both Richie and Howard try to convince her to stop, but to no avail.
Chachi is swindled by a scam artist into buying a wax spray that turns out to be corrosive; damaging Al's tables, Potsie's hair, Richie's bowling ball, the Cunninghams' chairs, Lori Beth's shoes, and—worst of all—Fonzie's motorcycle seat.
Worried about a big upcoming exam, and not helped by his ferocious professor, Potsie dramatically quits school.