After experiencing a few strange happenings, Richie begins to buy into the legend that the place where their Halloween party is to be held, the old Simpson house, is haunted.

Richie and the guys organize a time capsule for a school project. Howard agrees to let them use the vault at his store for the capsule, and Potsie accidentally locks them all inside.

Richie, Fonzie, Potsie, and Ralph receive notices from the army to report for physicals.

Fonzie and Howard are picked for jury duty. The case appears cut and dry, but Fonzie isn't so sure. Meanwhile, Richie, Potsie, and Ralph practice for a fraternity festival, and Marion is to hold a paint sale at the hardware store in Howard's absence.

Needing extra money, Chachi begins selling Incredo-Wax, a miracle product that will shine anything. Unfortunately, it has disastrous side effects and ruins everything it touches.

The merchant seamen are in town, and with them is Rico, a sworn enemy of Fonzie. Fonzie is primed to fight, but Father Delvecchio makes him promise not to.

Howard puts on a burlesque show for his Leopard Lodge with the hope that it will earn him the honor of being the Grand Poobah. The show is in jeopardy of being halted when the girls hired for the show are snowed-in in Buffalo, New York.

Howard's Uncle Joe, after reading Richie's report on the 1920s, tells him a story about what really happened during Prohibition.

Ralph's parents are getting a divorce, and Ralph becomes depressed.

Meanwhile, Marion practices for her upcomming role as the witch in a Hansel & Gretel play.

Despite Howard's objection, Joanie decides to buy a car because she and Chachi are tired of having to double-date, and Chachi cannot afford to buy his own.