Still in LA, Kramer still doesn't know that he is a potential suspect for a rash of murders. Jerry and George try to clear his name but while riding in the back of a police cruiser, inadvertently aid the escape of a recently arrested perpetrator whom they have discussed tipping ettiquette with.
With Elaine in Europe, Jerry has George to accompany him on a trip to LA and a taping of The Tonight Show. While they are there, they try to locate Kramer who is in LA trying to break into show business.
Jerry and George get another meeting with the NBC Executives and ultimately get the go ahead to write their sitcom. Meanwhile, Kramer agrees to be Newman's alibi for a speeding ticket and also develops side effects from the kick to the head he endured from Joe.
When Jerry's parents come to town to see a back specialist, Jerry finds himself in a number of annoying situations: Uncle Leo shows up with the watch that Jerry threw away which his parents had given him and then after a doctor's visit, Jerry's father is convinced that his wallet was stolen.
Jerry's fiasco with his watch continues as he tries to buy back the watch from Uncle Leo to avoid problems with his parents. Elaine uses Kramer as her fake boyfriend in an attempt to break up with her psychiatrist boyfriend but ends up dating Joe when she meets him outside the psychiatrist's office and is unaware of that it is 'Crazy Joe' whom she has heard of but never met.
Jerry's new girlfriend Naomi breaks up with him after overhearing him complain about her annoying, Elmer Fudd type laugh, so he takes Elaine along instead to a weekend away at a cabin with George and his girlfriend, Susan.
The vacation cabin of George's girlfriend Susan's father that the gang was at burns down because of Kramer's lit cuban cigar. Susan's father is distraught because of a set of letters that might be lost in the fire.
Kramer gets tickets for the opera and the whole gang plans to go, including Elaine and her boyfriend Joe. When Elaine goes to pick up Joe, he is dressed as a clown, in homage to the opera Pagliacci that they are seeing.
George and Jerry have still not come up with a solid idea for their NBC sitcom and their meeting with the network is the next day. Geroge wants to end his relationship with Susan so he can take advantage of his new profession as a writer but it will jeapordize the show as Susan is an NBC executive.
When George's mother catches him pleasuring himself, she slips and throws out her back, causing George to promise to swear off the 'deed'. Jerry decides to make it interesting by putting money on the line. Elaine and Kramer want in on the bet too and the gang all tries to see how long each of them can refrain from 'the deed' and be 'master of their domain'.
On their way home, Jerry and Elaine are bumped from their flight moved to a different one. Jerry is seated in first class while Elaine gets stuck back in coach.
Jerry continues to see the model that he sat next to on the plane until she mistakes his nose scratch for a nose 'pick'. George, however, thinks the 'pick' is a great way to annoy Susan and possibly drive her to break up with him.
Jerry makes plans to meet Elaine, George and Kramer at the movies but ends up trying to cancel as he has to perform a show. Jerry tries to find the gang to tell them his change of plans but he can't find anyone as they have decided to go to another theater to see the movie. Through a series of mishaps, no one ends up seeing the movie except Kramer.
When George's new lawyer girlfriend thinks that he is funny, he asks Jerry to act depressed so that he doesn't overshadow him with his comedic abilities.
Jerry and George have trouble fleshing out the female character in their sitcom. Their troubles continue when they are caught staring at the cleavage of the NBC Executive's daughter. Luckily, Elaine is able to remedy the situation. An old girlfriend of Jerry's covets Elaine's shoes, the same girlfriend who Jerry was never able to kiss though Kramer ends up with the opportunity to do so.
No thanks to Elaine, a reporter mistakenly writes that Jerry and George are a gay couple. The find themselves denying that they are gay, 'not that there is anything wrong with that'. To make matters worse, the New York Post reprints the article and soon everyone is calling about the news. Geroge's mother collapses and is sent to the hospital and Jerry ends up dating the reporter to clear his name, to ill effect.
Elaine, Jerry and George volunteer at a home for the elderly but get more than they bargained for. Jerry is assigned to a nasty old man who bites Kramer, and they end up losing him on the way to the dentist to fix the man's dentures. George only ends up making his senior depressed and Elaine is both intrigued by her senior's love stories and disgusted by her goiter problems.
Jerry dumps his new girlfriend after Elaine reports that she thinks her breasts are fake, however Elaine later discovers that they might indeed be real after an encounter in the sauna. Meanwhile, Kramer is convinced that he saw controversial writer Salman Rushdie at the healthclub. Geroge accompanies his girlfriend to her aunt's out of town wake and tries to obtain the death certificate so that he can get an airline discount.
Elaine goes to visit an old boyfriend who's is in the hospital for an operation. She is interested in renewing the relationship as he has lost a significant amount of weight however when Kramer and Jerry get the opportunity to watch the operation, they lose a junior mint in the man's body. Jerry is also having difficulties remembering his new girlfriend's name, only knowing that it rhymes with a certain part of a woman's anatomy.
When a restaurant valet with terrible body odor parks Jerry's car, he leaves a stench behind that permeates both the car and anyone who rides in it. George finds out that his ex-girlfriend Susan is now having a lesbian relationship and is intringued but Susan's new girlfriend ends up being attracted to Kramer.
Needing to go shopping for a gift, George borrows his father's car and parks it in a handicap spot on Kramer's suggestion. A revolt occurs when a wheelchair bound woman gets injured due to his parking job and the car gets trashed by the angry mob. Ironically, Kramer falls for the handicap woman when he goes with George to visit her in the hospital. George's father ends up getting arrested for his son's illegal parking choice.
The NBC pilot that Jerry and George have written is given a green light so they start casting for the actors that will play the gang. They find an actor who is perfect for the Kramer role but George thinks that the actor stole his raisins.
As rehearsals for the pilot begin, the NBC Executive's obsession with Elaine begins to affect his work. Meanwhile, Kramer becomes forced to deal with his own 'internal plumbing' problems and Elaine starts an investigation of the coffee shop's owner and his new hiring practices.
When NBC Executives approach Jerry about coming up with a sitcom, George decides he will help Jerry and comes up with an idea about a 'show about nothing'.