When Chase Gioberti (Robert Foxworth) learned that he lost his father (Harry Townes), two feuding heads of a California wine-producing family chose to put all their moments behind for Jason Gioberti's funeral. When younger daughter, Emma Channing (Margaret Ladd) was responsible for her uncle's death, Angela Channing (Jane Wyman) tyrannical matriarch and owner of Falcon Crest, protects and calms her. When Chase's family heads back to New York, after the death of his father, he begins to remember all the fun times he had with his father. It was also Chase's call for his wife, Maggie Gioberti (Susan Sullivan) and children, Cole (William R. Moses) and Vicky (Jamie Rose), to move to their own house in California, at Falcon Crest, after a year's sabbatical that has taken a toll on his family. Unhappy with Chase's family moving back to the vineyard, Angela comes up with a way to forsake them, consequently, her grandson, Lance Cumson (Lorenzo Lamas) was shocked to hear about her decision for a competitive family to go back east.

When Angela couldn't tolerate Lance's irresponsible behavior, she prevents her grandson from becoming the proud owner of Falcon Crest, therefore, she kicks him out, much to her contempt. Discovering from him of his grandmother's feelings towards him, he tries to please Angela by blowing up Chase's pump house and cause a fight in the springhouse, and later gets arrested, before he gets grounded by Angela, not Julia (though she told Lance, her mother was under the impression, who also gave Lance to him, away from Julia, as a little boy)! Once grape harvesting begins, Lance tries to please Angela, again, by paying off Chase's staff, afterwards, to make Lance jealous, Angela escorts Cole into becoming the new heir of Falcon Crest, who straightens out with his father about Chase's staff losing pickers. Cole learned about this, he takes the keys and the car back to Angela, returning to his parents' house. Lance told Angela about his actions, and the staff, before Chase confronts Angela about her doings with Cole and about Chase's staff being gone and demanded that the staff returns, early in the morning.

Angela resists Chase's claims to half ownership of Falcon Crest. Lance, already bitter over the prospect of sharing his inheritance with Melissa, gladly accepts the assignment of keeping Chase off the vineyard property. Richard Channing, illegitimate son of Angela's late husband, prepares to take control of The Globe as the new chairman of the board, while Angela looks for a way to block him. The newspaper is only a small part of the vast portfolio called ""The Company,"" held by Henri Denault, Richard's mentor and stepfather. Adopted at a young age, the desire to finally learn his mother's identity has motivated Richard to make the move to California and take over The Globe. When Cole shows up at the Agretti's demanding that Melissa acknowledge that she is carrying Cole's child and not Lance's, Carlo punches him in the face. After Gus dies in a gas explosion, Chase threatens Angela with an affidavit accusing her of complicity in Gus's death. He then forces Angela to agree in sharing the