After being found unconscious, Angela is rushed to the hospital, where she slips into a coma. Lance has a difficult time managing Falcon Crest without Angela, particularly when business associates insist on negotiating with Angela, but fortunately, Pilar is able to help Lance deal with their distributor, Ned Vogel. Richard discovers that Michael was instrumental in Richard's loss of custody over his children. A power outage at the hospital forces the family to consider pulling the plug on Angela's life support.

With his continued influence over Emma, Charley upsets the family. After the bank calls in its loan, Richard saves Falcon Crest from Michael Sharpe. Encouraged by his sister-in-law, Genele Erickson, Frank Agretti goes to the bank with the power of attorney which Angela had given him prior to her aborted trip to Europe and takes over operation of Falcon Crest.

Due to Richard's testimony, the S.E.C. slaps Michael Sharpe with the largest fine in history. Lauren and her husband confront Michael about his schemes and their custody of Richard's children. Frank's obsession with the treacherous Genele escalates. Charley is relieved to hear that Emma's husband has apparently committed suicide, since his death removes the last obstacle for Charley to marry Emma. When the court gives control of Falcon Crest to Emma, she is overwhelmed by the notion of running the business. Emma's new husband Charley, however, has many ideas about running Falcon Crest.

Charley hires his brother Ian and his young, child-like wife, Sidney, to help run the winery. Since the new arrivals put Charley at odds with Lance, the two fight. After Lance soundly beats Charley, Charley immediately fires him. After rescuing his sons, Richard learns that they liked Lauren and returns them to Lauren's care, despite the fact that she is Sharpe's sister. After Pilar and Lance confront Emma about Charley, he throws a bacchanal party, which is crashed by bikers. Ned Vogel, who has taped evidence of Pilar securing his distribution contract through sexual favors, blackmails her. At Angela's bedside, Emma thinks she hears her comatose mother command her to get rid of Charley, but Emma isn't sure whether or not she imagined it.

As Michael Sharpe arranges for Richard to be killed, the contract eventually goes to Sal, Richard's acquaintance from prison. Instead of killing Richard, Sal offers to help him get back at Sharpe, but later pays with his life when Sharpe learns that Sal double-crossed him. After Sydney defies her husband and befriends Emma, Ian beats her. In order to get rid of Lance, Charley shows him a videotape of Pilar's liaison with Ned Vogel. Despite Pilar's pleas, Lance leaves enraged, just as Charley had hoped.

Michael Sharpe convinces Ian and Charley to sell Falcon Crest to him, but Emma backs out. When Sharpe informs Ian and Charley that he has information on them that could put them in jail, Charley agrees to kill Emma and forge her signature. Charley is stopped in his tracks, however, when an unsuspecting Emma informs him that she is pregnant. Lance becomes embroiled in a deadly game of Russian roulette involving scorpions.

As payback for Jace Sampson's cooperation in Sharpe's takeover of Falcon Crest, Richard talks Jace into making an investment after which Jace loses all his money. Pilar and Lance's estrangement worsens. After Walker catches Richard and Lauren kissing, he confronts them with dynamite strapped to his chest, which is set to go off when the timer runs out. Rather than kill Lauren and the boys along with Richard, Walker runs outside just as the dynamite explodes.

Haunted by the memory of her husband's death, Lauren moves out of Richard's place and in with Genele. When Danny invites Sydney for a romantic night on his father's yacht, Sydney maneuvers to put Lance and Pilar on the boat together instead. When Sharpe uses sensitive information about Richard's business dealings, he makes $300 million and Richard loses $52 million. Richard wrongfully accuses Lauren of leaking the information. After showing up at Richard's door, Genele removes her clothes.