Elisa has trouble accepting mixed-race children, especially when Kim, the gang's other classmate is the son of an interracial couple. She avoids interacting with him and runs off rather than play games with the group. She wanders into the old garment factory, which is condemned and winds up in danger. Kim and Fat Albert are able to enact a rescue and Elisa is able to learn a valuable lesson.

Beau and Francie are brother and sister. However, Beau lets it slip that Francie was adopted by their parents. After she confronts them, the parents indeed admit they adopted her when she was a baby. Francie is distraught and runs away, only to wind up in danger as she falls into a river and will get pulled into a drain tunnel. Beau and Fat Albert are able to save her in time and the family reunite proving that they love their daughter no matter what.

The gang is impressed with the number of material items Steve and Claudia have, giving them the impression they're rich. However, when Fat Albert investigates, he learns the twin siblings are routine shoplifters, stealing the various items from department stores and selling them to other kids. Fat Albert later notifies their parents, who indeed find some of the stolen items in their rooms. The twins think they'll never be caught. But when a stockboy is arrested, accused of being the thief, they feel guilty and confess their crimes to the store manager.

The gang's friend Richard has a tendency to "borrow" his uncle's car and gives them joyrides throughout town. He then takes a neighbor's car out while he's away, giving the gang another joyride. However, this leads to danger as their ride gets out of control and the car winds up in a lake. Fat Albert arrives in the nick of time to rescue them. As a result, Richard has to face the consequences with the police, his parents, and the neighbor who owns the car.

Weird Harold develops a gambling habit and tries to convince the gang to bet in a horse race. When they initially decline to contribute, Harold becomes an errand boy for Sheldon, a hustler, who promises to pay him. He's able to convince the others to join him, but Fat Albert refuses as he tries to talk sense into the gang. When the gang's sure bet loses, Weird Harold has to face the consequences for his actions as Sheldon has already since he was thrown in jail for his scams.

The gang's classmate Patty was a straight-A student until she fell into the drug scene and now gets regularly high on marijuana. When the gang meets her drug pusher, Rudy is tempted to try it himself, but has a change of heart when he sees Patty in danger. He and Fat Albert are able to save her. They and a police officer meet with Patty's parents about her problem and she agrees to help get the pusher arrested, which is the first step on her road to recovery.

The gang's friend Shawn thinks he's cool by carrying around his father's gun. All are impressed except Fat Albert, who goes to his parents in an effort to stop him. Though the gun is usually unloaded, Rudy finds a bullet which enables Shawn to use it for target practice. But a near tragedy occurs when the gun backfires, severely injuring his hand. Fortunately, his father had medical training which helps to save his son. As a result, the gang learns a valuable lesson.