Grace gets her learner's permit. She has a crush on Pace, a boy from her driver's education class, who seems oblivious to her feelings. So she goes out with Paces' annoying friend, Spencer, in an attempt to maybe make Pace jealous enough and have him ask her out. The date is a disaster. Tiffany breaks up with Jake when it becomes clear to her that their relationship wasn't going to go beyond the physical attraction.

Jesse doesn't want to go to a dance by herself, which frustrates Karen because they bought a dress for it. Christie and Graham continue to clash at work. Karen's worried that her relationship with Leo isn't building towards something. Lily is uncomfortable with Graham's flirting and when she goes to establish that their relationship is purely a working one, he confesses his feelings for her. Rick interrupts him before anything else can happen. When she tells Christie, Christie basically tells her it's no big deal. Later, Graham kisses Lily unexpectedly. When Leo shows up late for a museum trip with Jesse, Karen is really upset with Leo because she knows that Leo means a lot to Jesse. She finally decides to break up with him. Lily angrily confronts Graham about it, with Christie present.