Due to Richard's testimony, the S.E.C. slaps Michael Sharpe with the largest fine in history. Lauren and her husband confront Michael about his schemes and their custody of Richard's children. Frank's obsession with the treacherous Genele escalates. Charley is relieved to hear that Emma's husband has apparently committed suicide, since his death removes the last obstacle for Charley to marry Emma. When the court gives control of Falcon Crest to Emma, she is overwhelmed by the notion of running the business. Emma's new husband Charley, however, has many ideas about running Falcon Crest.

When Genele forces Frank out of his own home in order to entertain her lover Sharpe, Frank delivers the remains of Genele's sister and Frank's ex-wife Renee to the police, informing them that Genele killed her ten years before. Sydney tries to push Pilar and Lance back together. Sharpe is displeased when Lauren moves in with Richard after her ordeal with Walker. Sharpe tries to act as a business mentor for Danny.

Danny has a severe head injury as a result of crashing Sydney's car, which Sharpe had tampered with to get at Sydney. Danny's mother, Anne Bowen, and Sharpe decide to approve a dangerous operation to remove a bone shard from Danny's spinal cord. Discouraged by the bad luck she seems to bring to all her boyfriends, Sydney leaves Falcon Crest. Suspecting that Sharpe was behind the car accident, Richard and Lance track down the auto mechanic, Sacco, who did the tampering. Alerted to Richard and Lance's involvement, Sharpe sends his chauffeur Nick to ensure that Sacco doesn't talk.