Whilst Mr. Kwok demonstrates karate to the Bayview males, who vie with each other to impress Jane, Tom is introduced to Jane's psychic, Marjorie Evans, and asks to be put in touch with his dead wife.

A seance is duly organized, but Marion has bribed the medium to give a fake message, saying that Tom's wife disapproves of his relationship with Diana. Diana,however, exposes the plot.