The film starts as high school students return from spring break.
When the gang leader Calvin burns down his office, Swimper abandons his plans and quits on the spot.
In his first day, Packham is amazed to learn the true nature of the school and is especially determined to re-establish the library from its current form of smoke-filled room with no books.
It is revealed Calvin used the money from the PTA (that never reached Relic's hands) to start a health club in the school's toilets.
Students march in the hallways, the health club is now a fully equipped gym and the library is full of books and even video and audio tapes.
Therefore, Relic distracts the inspectors by taking them to inspect the guidance counselor Ms. Simpson.
After she pulls him down to the floor, Swimper is seen running away from school with her chasing him in the street and shouting for him for the remainder of the movie.
With Swimper and Calvin's rival gang both out of the way, the cafeteria is turned into a fully fledged restaurant.