Wealthy yacht builder Sam Burton tries to lure prominent advertising expert and author Margaret Lawson away from her career. Standing in the way is her handsome young assistant, Jeffrey, with whom Margaret is having an affair. When Margaret gives in to Sam, she finds that he insists on having the final word in their relationship, whereas she's used to having the upper hand with Jeffrey. Billy gives Dave, who is still addicted to amphetamines, the news that he failed the bar exam. Distraught, Dave begs Megan to come home, but she leaves when she finds him strung-out and belligerent. When Julie informs Dave that Megan is pregnant, Dave flies into a rage. Dave's ensuing physical confrontation with Megan sends her to the hospital, where she miscarries. This dose of reality jars Dave to enter a drug rehabilitation clinic. Peter and Christine celebrate the third anniversary of sharing business and boudoir.