Roger tries to convince Flip to stop drinking and hanging out with guys that do. Flip doesn't take his advice, and he and his friends accidentally hit Heather with their car.

Meanwhile, Fonzie auditions barbers to replace his who recently died. Also, Jenny, K. C., Bobby, and Melvin are in charge of decorations for the Winter Carnival.

Fonzie is accused of hitting a trouble-making student but refuses to testify at a school-board hearing. By not doing so, he runs the risk of being ruled against and getting fired.