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Terry and her friend Peggy are hoping to join an exclusive sorority at their high school, but Terry is refused membership because her father is in show business, which is considered lower-class by the the snobbish social club.
Terry is very excited about her new part time job in a dress shop. However, the bloom is off the rose when Terry complains about an aggressive co-worker, who manages to get to customers before Terry has a chance. Danny intervenes when he sends a decoy, a girl from the Copa, to the shop, in order for Terry to make a hefty sale.
Rusty announces he is entering the Soap Box Derby. Danny and Mr. Daly go down to the basement to help Rusty, but argue over the design and each end up building their own cart. They are so busy arguing that neither notices Rusty has left the basement.