Because the high school was vandalized, Officer Kirk imposes a curfew. Richie suggests that they demonstrate against the curfew, get arrested, and fight it in the courts. While Richie, Potsie, and Ralph are in the restroom at Arnold's discussing their plans, the lights go out, and they discover they are locked inside after Arnold closes up for the night.

Fonzie poses as a police officer in order to stop a rumble between two rival gangs.

Kirk, the new acting sheriff, tries to exert his power by forcing Fonzie to leave town.

Pinky Tuscadero's younger sister, Leather, comes to Milwaukee looking for a gig. Al gives her and her group a job at Arnold's after a successful audtion, but Officer Kirk threatens to shut the place down after learning of Leather's troubled past.

Fonzie survives an explosion at the garage triggered by the counterfeiters. The counterfeiters don't know that Fonzie has survived, so a phony funeral is staged at their funeral parlor to entrap them.

Marion forgets to set the parking brake in her car, and it rolls down a hill and through the wall at Arnold's. To show Howard that she is a responsible person, she goes to court to take full responsibility for her actions. She phones Fonzie at Arnold's and says she is in jail.

In order for Jenny to join the Rondells, a popular club, she has to steal a statue from Pfister Park and bring it to their clubhouse. Joanie is there to help, and they are both caught by Officer Kirk.

Fonzie hires a convict, via a work-release program, to be a mechanic at his garage. After the convict, Jim, sees K. C. perform a song at Arnold's, she invites him to dinner. Howard stops K. C. from seeing Jim after Fonzie informs him and Marion of Jim's felonious past.

It's Heather's birthday, but Fonzie (along with Potsie and Roger) has to report for the Army reserves. He promises Heather that he will be at her party, but he didn't count on Officer Kirk being the commanding officer.