Michael Bluth is disappointed by his son, George Michael's latest grade, A-minus, on a math test. Conversely, Lindsay is quite impressed with Maeby's C-minus, noting that she didn't even study. Michael tells Lindsay that she's not setting enough boundaries for her daughter and Lindsay counters that Michael puts too much pressure on George Michael and is as bad as their father, George Sr., who used a one-armed former employee named J. Walter Weatherman to scare his children into learning what he considered valuable life lessons. G.O.B. comes in with his own problem. He needs to borrow money to repay Hot Cops, a stripping agency he used to work that claims he never delivered on a gig. His mother, Lucille, also needs a favor, as she needs someone to help her doctor some receipts of purchases made using company money before giving them to the U.S. Securities and Exchange Commission (SEC). When Michael says he can't, she goes to ask Lindsay. Lindsay refuses, but when she sees Maeby's latest grade, a D-minus, she realises that perhaps Michael was right and decides to send Maeby to do the work as punishment.
At the same time, Michael overhears George Michael berate himself as he struggles with a math problem and realizes that maybe he is pushing him too hard and tells him to take some time off and relax. George Michael grows bored, though, and decides to go back to work in the banana stand the next day, where he is confronted by his uncle Buster. Buster tells George Michael that his girlfriend, Lucille Austero's vertigo is acting up, and by trying to fight it without medicine, she's experiencing some nausea. So he decided to ask George Michael, the most streetwise kid he knew, to obtain some Pot (marijuana) for him to give to Lucille. George Michael, surprised, tells Buster that he has no idea where to find illegal drugs, which Buster refuses to believe, seeing as the Bluth Banana Stand used to be a well-known location for drug dealers due to its shape, which resembled a big yellow joint. Michael finds his son working and chides him for not taking time off, giving him $20 to spend on himself. Buster pretends to agree with Michael, and gives George Michael $225, which Buster intends him to use to buy pot.
Maeby is spending time with Lucille, examining jewelry. Lucille finds a brooch that Lindsay always wanted and decides to give it to Maeby. Maeby is excited at the chance to make her mother jealous, but is bothered by a remark Lucille makes about her freckles. Shyly walking around the docks, George Michael doesn't find G.O.B. on the yacht and leaves a note asking if he can buy him some pot. G.O.B. did, but tells Michael about it first. Michael quizzes his son, who nervously denies all knowledge of nefarious acts. Michael knows that George Michael is lying to him and reconvenes with G.O.B. - who is now smoking the pot he bought - to ask what he should do, when he gets an idea, and decides to teach his son a lesson like his father used to teach them. Michael visits his father to get access to the one-armed man so he can teach his own son a lesson. But George Sr. refuses, telling Michael that his lessons were wrong, and that Michael should just talk to his son. But Michael is still set on the lessons, and decides to do it himself. With G.O.B.'s help, Michael hires some Hot Cops to stage a fake drug bust.
Buster finds George Michael, who tells Buster that the drugs are on G.O.B.'s yacht and Buster can pick it up. But Buster, who thinks G.O.B. doesn't respect him enough to do him the favor, insists that George Michael has to get it. And Lindsay finds out her daughter got the brooch she always wanted, and worse, was getting along with her mother, who criticized and insulted Lindsay her entire life. But when Lucille begins to do the same thing to Maeby, Maeby decides she's spent enough time with Gangee, taking the brooch and leaving. Later that night, Michael goes over the final details with G.O.B., who tells him not to worry, since this kind of thing happens on the docks all the time. A boat flashes a light, somebody drops off a bag. George Michael boards the yacht and G.O.B. flashes the lights. Quickly, two men appear with a bag of pot and George Michael reluctantly completes the deal. That's when the Hot Cops - plus one "construction worker" spring into action - cranking some music and dancing around. Michael appears and tells George Michael a lesson has been instilled. But Buster, deciding to stand up for himself, comes forward and admits that the weed was for him, not George Michael. Michael, upset with Buster, tells him to take his son home.
Just as they leave, though, two real drug dealers, having seen G.O.B.'s light flashing, come forward with a supply of weed looking to make a deal. But before G.O.B. can explain, a police boat comes up, flashing its lights. The dealers, thinking they were set up, pull out their guns, and Michael and G.O.B. become trapped in the middle of a gun battle. The brothers are terrified, until one of the dealers loses an arm, and they look up to see the face of J. Walter Weatherman. Michael realized that, once again, his father had taught him an elaborate lesson - not to teach his son lessons. That night, back at the model home, Maeby gives her mother the brooch, glad to have a mother who doesn't treat her the way Lucille treats Lindsay. And Michael tells George Michael that he should have told Michael what was going on, and that he should always feel comfortable to be honest with him, to which he responds by admitting to having a crush on Maeby. Michael, however, does not believe him.