Plot

Jerry is asked to explain to his parents why he does not wear the watch they gave him. Morty Seinfeld thinks his wallet has been stolen from him at his doctor's appointment.

Jerry's parents are in town so that his father Morty can see a specialist about his aching back. Morty is upset when he finds his wallet is missing from his pants pocket after leaving his clothes unattended in the examination room. Jerry has to do some quick thinking after his parents ask why he doesn't wear the watch they gave him. In fact Jerry threw it away because it didn't keep the correct time. George decides to play hardball with NBC, demanding a better deal for their show about nothing. Elaine returns from Europe determined to break up with her psychiatrist boyfriend but he's not making it easy for her.—garykmcd

When Jerry's parents come to town to see a back specialist, they hear about "Crazy" Joe Davola not liking Jerry and ask about the watch they gave him. Jerry tells them that the watch is gone for repairs & is angry with Kramer for telling his parents that Joe is now gunning for Jerry after having hit Kramer at the side of his head. Helen (Liz Sheridan) won't accept when Jerry says that there are many people who don't like him. Kramer's doctor has told him that he has a mild concussion, and the side effects will pass in a few days. Morty (Philip Bruns) agrees with George and says that TV studios are crooks and will always underpay the talent. He also feels that the $13,000 offer for the pilot is too low. Jerry says that they will sign the deal. Kramer wants to know why Jerry's watch is taking so long to repair. He asks where Jerry has sent it, and Jerry gives him an address. By chance, Kramer happens to know the owner of the store and offers to have his watch back the next day. Jerry has to insist that he wants to favors. Later, Jerry tells Kramer that he threw the watch away as it was not good, but it was a gift from his parents. Jerry asks Kramer not to mention the watch again.

George "negotiates" the deal with the NBC and gets a box of cigars from Susan Ross's father. George meets Susan and says that he and Jerry will "pass" on $13,000 offer from NBC for the new show. Susan says that this is a standard deal offered to artists with their first show. Susan also doesn't believe that George has consulted with Jerry before rejecting the deal on the table. Susan agrees to take the verdict back to the NBC president Russell Dalrymple (Bob Balaban). Jerry yells at George as the NBC gets pitched hundreds of ideas every year and they pick probably 5. So, if Jerry and George pass, they move to the next show.

Morty claims that his back was hurt the night when he slept on the convertible sofa (when Jerry was visiting with Elaine) While at the doctor's office Morty's wallet is "stolen". Morty is asked to keep his stuff in the examining room while he is called away for x-rays before his doctor's appointment. When he comes back, he finds his wallet is stolen. He refuses the doctor to treat him after this incident. Helen says that he should have heard the Doctor's diagnosis as he came all the way from Florida for this.

Morty goes to dinner with Jerry and Uncle Leo. Leo is upset at Morty as Leo took a personal favor to get Morty an appointment with the back specialist. Morty finds Leo wearing the watch that looks very similar to the one he had gifted Jerry (& the one Jerry claims has gone for repairs). Leo claims that he found the watch in a garbage can. He got it fixed and now it works perfectly.

Elaine returns from her trip and tries to end her relationship with her shrink Dr. Reston (Stephen McHattie). Jerry and George tell Elaine that she has a "tell". She touches her face when talking about a relationship that's not going well. Elaine is in a tricky spot as Dr Reston is her long time shrink. While she wants to stop seeing him romantically, but she wants him to continue to be her shrink. Elaine tries to break up with her shrink by telling him that she is dating another guy named Kramer. The Shrink wants to speak to Kramer and won't give up Elaine so easily.

The deal with NBC is lost.

"The Wallet" is Part 1 of an episode pairing and continues into "The Watch" which is Part 2 and aired the following week.