Gary meets Judy Trent who wants his help in getting her husband Earl support from AA. Abby begins to show her manipulative nature by taking advantage of Eric and trying to seduce Kenny. Karen confronts her.
Richard quits his job at his law firm, hoping he will be hired by another, while Laura is blossoming at her job in real estate. Val starts college and Gary makes a deal with Orchid Cab Co.
Following her arrest for drug possession, Sue Ellen Ewing's younger sister Kristin Shepard arrives in Knots Landing after calling Valene for help. She is later caught in a compromising position with Kenny.
Diana feels pressured to sleep with her boyfriend Bobby, and undergoes a rite of passage afterwards. Meanwhile, Richard and the saucy Abby have a brief encounter.
The neighbors throw a barbecue for Laura to celebrate her new success as a realtor. At the party, Richard paws Abby and Laura overhears them planning to meet later.
Michael's continued hyperactive behaviour is a major source of concern for Karen and Sid. Abby becomes bookkeeper at Knots Landing Motors. Gary receives threats from Orchid Cab Co. and is ordered to pay them $50,000.
Val deals with the news that she has a malignant tumour in her colon and may need a colostomy far better than Gary does. Bobby arrives from Dallas to give Gary home truths.
Abby's ex-husband Jeff kidnaps their children Olivia and Brian. The Orchid Cab Co. come back to haunt Gary and Sid when the cut the brakes on Sid's car, which goes over a cliff.