Eric and his friends go to a Cockney Rebel concert in London.
It's Eric's birthday and his parents throw him a party against his will.
Prince Charles comes to town and Eric and his friend's plan to streak at the rally. They all chicken out except Eric.
The kids decide to go to a disco but Dylan doesn't know how to dance so Mrs. Forman teaches him to dance. Mr. Palmer walks in on them in a compromising position and believes they're having an affair. Michael gets jealous of Torbjorn because he thinks he's putting the moves on Jackie.
Eric and Donna go to the pictures. Eric doesn't want Michael and Jackie to go because they'd be competition but Donna invites them anyway. s Torbjorn's house parents think he's listening to the devil's music (an Ozzy Osbourne album). Ron and Kitty spend the evening out and almost get arrested.
Ron's mother visits for a peaceful Sunday afternoon at the Forman household.
While driving Grandma home Eric tells her why he doesn't like it when she visits. She doesn't take too kindly to this because she drops dead. Also Eric gets in a bar fight.
When Eric scratches the car, Ron suspends his driving privileges s the gang has to walk everywhere. That is until Michael's cousin lends him a car. They get arrested though because the car was reported stolen. With one phone call Michael calls Jackie and she tells him that she'll have sex with him once he gets out of prison. The whole incident was a mix-up and the gang is released.
Jackie thinks she might be pregnant, when Michael finds out he passes out. When Midge finds out she puts Donna on the pill. Bob doesn't know Donna's on the pill until he picks them up at the pharmacy, while Eric is there. Jackie ends up not being pregnant which makes Michael the happiest guy in the world. She also stuns everyone when she breaks up with Michael.
Eric doesn't feel like a man when he loses a game of basketball to Donna. Ron seems to want to fix everything that doesn't need fixing.
Helen comes home for her birthday with a friend, Kate. Eric and Kate kiss, and he can't help but tell Donna. She's furious but eventually forgives him. Also Kitty is annoyed by Ron's mother who won't stop calling her and then decides not to come to the birthday party.
Eric spends time with fellow student Adam Dunlop, who has a Lotus Elan. It takes Eric far longer to realise Adam is gay than it does his friends.