In his quest for land adjoining Falcon Crest, Gustav Riebmann approaches Sam Giannini and when he refuses to sell, Gustav has Spheeris pay Giannini a special visit that night. Richard acquires the radio station KRDC, promptly fires the entire staff and makes Frank Taggert the new general manager. Chase and Maggie travel to New York, trying to uncover her past. Joel gives Terry written proof that they are still married, and it takes another $10,000 check to keep him quiet. Lorraine Prescott, Richard's stepdaughter from a previous marriage, re-enters his life, which is news that leaves Pamela stunned. Angela believes Richard's fierce protectiveness of Lorraine may be the weakness she's been looking for in him. Julia appears to Emma again on the porch, asking for money, but insists that Angela mustn't know.

Chase uses Emma's findings and confronts Senator Silverlake in Washington, D.C. with the evidence that he was bribed into faking the F.A.A. reports. Senator Silverlake confesses, absolving Chase of all blame in the crash. Lorraine demands that Lance print a retraction to an article that ties Richard Channing to the criminal underworld. Lance is more interested in seduction than retractions, but Lorraine strives to ignore his advances. Both Richard and Gustav court Francesca in order to get closer to her share of Falcon Crest. However, Angela and Greg persuade her to sign a contract for her share of the vineyards. Private Investigator Mike Harris informs Maggie that her real father was killed in World War II. Melissa tells Greg she cannot see him anymore as it will jeopardize her relationship with Cole, but Greg is persistent in pursuing her.

Lance calls Falcon Crest to get bailed out, but Angela grabs the phone and tells him that he can rot in jail. Ralph Delaney arrives and says that The New Globe will pay Lance's bail. Richard wants Maggie to do a story on Lance and exploit his situation. When Lorraine hears this, she is furious and accuses Richard of slanting the news. Chase tightens security at home and purchases a gun. He learns from Herb Boutilier in Washington, D.C. that Ben never worked for the government and receives a phone call warning him to stop looking for Ben. Charlotte and her old gambling partner meet and begin to lose money at the track. Richard sends Joel to a drug rehabilitation center in order to get him away from Terry. Although Lance insists he was framed, Angela refuses to believe him, and he is again disinherited. Lance moves in with Lorraine at the Tuscany Inn.