Dharma discovers Greg is really the only man for her when she agrees to attend a dance with a nerdy high school kid, but meets with some serious competition from the younger crowd. Meanwhile, Larry sings his "You guys are okay" song to Edward and Kitty, causing Kitty to fall and hurt herself; this prompts Kitty to sue Larry after she is embarrassed by her donut-cushion in front of the mayor. Larry represents himself, while Pete arbitrates.

A gently surreal episode whose humor derives from escalating skewed logic in the Preston Sturges mode: Greg's hostile secretary Marlene is offended by her annual staff evaluation as "Satisfactory," while Greg is overjoyed by his "Superior" rating until he learns Pete got the same rating. When Greg confronts his boss, he is driven to desperation by the man's apparent complete inability to discriminate between similar items (Tahiti vs. Buffalo as a honeymoon destination, freshly baked bread vs. moldy supermarket bread), and almost unhinged by the boss's decision to put Pete in charge while he is in medical leave. At the same time Greg must deal with Dharma's impulse decision to open a store without first deciding what she will sell, and the fact that the place quickly becomes packed with people who find Dharma's environment strangely soothing and establish a barter economy amongst themselves. There is of course only one "logical" conclusion: despite the fact that Dharma is losing money, she makes a profit when she is bought out by Starbucks. Meanwhile, Larry tries to persuade Edward to buy a drug-running friend's power yacht, and the four-in laws find themselves held prisoner by an aggressive sea lion who climbs on board and won't leave.