Karen's former boyfriend, Teddy Becker, visits Knots Landing and believes he is Diana's real father. Val and Lilimae bond after bad memories resurface.
Laura believes that Richard is having an affair when he starts to go to client parties so she goes on a trip to Santa Barbara with Scooter out of spite.
Lilimae meets a con man who wrongly believes she is rich. He takes her to Las Vegas hoping to marry her but when he discovers she is poor, he confesses all. Gary spends time with Abby and her children and Lilimae warns Val about the situation.
Gary and Abby invest in a company which make methanol cars. Gary mortgages the house behind Val's back. While in Mexico, Gary and Abby have their first kiss, while Val is left home upset by the recent revelations.
Karen's college friend Victoria Hill visits and organizes a fashion show which the women of the Cul-de-sac help out with. Laura discovers she is pregnant.
A man from Valene's past drops by for a visit, but he leaves behind his stepdaughter Cricket. From the very start, it seems that Cricket is a problem child with serious issues. Karen's brother Joe comes to town.
Val writes a journal about the Ewings of Dallas for an assignment. Without her knowledge, Abby shows it to Karen's brother Joe, who believes that it is good enough to be published. Laura leaves Richard.
Abby, Gary and Val go to Sacramento to meet a senator about making methanol legal or their business will fail. Abby sleeps with the senator to get the bill passed. Karen comes to terms with Sid's death.
While a distraught Valene is stranded in a roadhouse overnight, Gary and Abby take advantage of her absence by sleeping together for the first time. Karen tries to convince Laura to visit Richard in the psychiatric institution.
Abby and Gary continue their affair until Gary's guilt forces him to end it. However, Val is already suspicious and confronts Abby. Laura considers reconciling with Richard.
Laura moves back in with Richard after finding his suicide note. Karen and Lilimae spot Gary and Abby together. Karen later catches them in the act and confronts them but then Val walks in on them and leaves Gary.