With the plant's closure on the horizon and Red on the verge of unemployment, the Foremans decide to hold a garage sale to raise money. Looking for a way to contribute, Hyde makes "special brownies" to sell at the garage sale, much to Eric's distress. However, things don't go the way Hyde intends when Red, Kitty, Bob and Midge eat all the brownies. A stoned Red then accidentally sells Eric's Vista Cruiser, leading he, Eric and Hyde on a quest to get it back. Meanwhile, Fez kisses Jackie, which o
On his last day of work at the plant, a depressed Red gets drunk with his co-workers at a bar. When Eric, Hyde and Fez go to collect him, they all get drunk as well. Meanwhile, Kelso gets a free van from his uncle and Laurie starts to get a little amorous with him, while Jackie and Donna talk about sex.
Tired of her parents' odd behavior, Donna forces Eric, Hyde and Fez to take her to a dance club in Chicago. Initially, only Donna is let in, forcing the guys to think of their own ways to get in. Meanwhile, Kelso gets a makeover from Jackie, and Red starts looking for other jobs in town, but hits a snag when he finds his former co-workers from the plant are after the same job he discovers.
One of Laurie's college professors (Stephen Tobolowsky), arrives at the Foreman home, under the false pretense of convincing Laurie to return to her classes. However, Eric soon discovers his real reason for being at the Forman house when he catches Laurie kissing her professor, and attempts to blackmail his sister with this information. Meanwhile, tired of bunking with Eric, Hyde begins searching for a suitable place to sleep around the Foreman home, and Donna is at the center of her parents' fi
The gang is at odds with each other after finding their old permanent records on Halloween night at their old, burned down elementary school, where many secrets are soon revealed. These include: that Donna used to streak; Kelso had to repeat the first grade; Jackie's middle name is Beulah; Eric was responsible for the first time Hyde got in trouble; the time Hyde kissed Donna; and Jackie saying that Fez was a better kisser than Kelso. Meanwhile, Red and Kitty reminisce about their first Hallowee
The gang heads off to "Vanstock" and Laurie tags along. However, Hyde convinces Jackie to come along as well to "surprise" Kelso. In reality, Hyde sets out to make Kelso's life miserable, due to Kelso actively cheating on Jackie with Laurie. Meanwhile, Donna is upset with Eric for not telling her about Kelso and Laurie, while Jackie and Laurie actually become good friends, much to Kelso's dismay. Back at home, Red begins to watch soap operas under Midge's influence.
After Donna says "I love you", a stunned Eric responds by simply saying "I love cake". Eric then becomes confused with how he should return his feelings towards Donna. Meanwhile, Jackie buys Kelso a leather jacket which makes him resemble Fonzie, and Bob is kicked out of the Pinciotti house by Midge. Bob moves in with the Formans, much to Red and Kitty's dismay, forcing Red to come up with a plan to get Bob back into his own home.
Eric and Donna sleep together in Eric's bed, but don't have sex. This prompts many jokes from the guys, convincing Eric he must do it the next time. Meanwhile, seeing that money is tight in the Forman home, Hyde goes out to find a job at a photo-developing store, where the hippie Leo (Tommy Chong) is introduced.
Donna is acting out over her parents' break up and takes up smoking. Eric gets caught holding one of her cigarettes in the school yard and is suspended. Even though Eric tries explaining what really happened, Red punishes him. Fez and Hyde go on a double date, set up by Fez's host parents; Hyde can't decide which girl he likes better. Jackie and Kelso argue over how many stuffed animals she can have in his van.
Red's birthday turns sour when Bob and Midge show up for dinner, but with their own dates. Meanwhile, Eric thinks Donna doesn't confide in him as much as she does the others, while Jackie suspects Kelso is keeping something from her.
Laurie moves out of the house and lies to Red about living with another man. Meanwhile, Jackie's suspicion with Kelso cheating on her grows, prompting Kelso to ask Hyde for advice on how to cover his tracks.
Eric wants to buy an anniversary present for Donna, but discovers his secret stash of money has been stolen. Eric eventually begins to believe that Hyde is the culprit, leading to a strain on their friendship. Meanwhile, Jackie enters a beauty pageant with Kelso as her "pageant boy".
The guys and husbands go deer hunting, while the girls and wives stay at home and play poker, which Laurie cheats at so Kitty can win. Meanwhile, Fez kills a crow, which is then eaten by he, Bob, Hyde, and Kelso, and Red has a heart-to-heart talk over his angry behavior with Eric.
A new department store, Price Mart, is opening in Point Place and Red seeks a managerial position, until Eric is hired as a stock boy first, much to Red's annoyance. Meanwhile, Laurie wants a real relationship with Kelso, and Kelso is unsure if he should continue dating her. He tries to end it, until Laurie threatens him with revealing his infidelity to Jackie.
With her parents away, Jackie plans on throwing a small, classy dinner party. Kelso tries to turn it into a fun party, and invites everyone he knows; Jackie is upset, and when Kelso tries to fix things, he only ends up making them worse. Hyde makes it with a snobby girl from school, but the guys don't believe him. Red finds out that Bob wears a toupee, and then has to spend an uncomfortable evening not talking about it.
Bob and Midge plan to have a second wedding, intending for Donna to write their vows, but Donna doesn't know how to put them into words. Meanwhile, Kitty is upset at not being one of Midge's bridesmaids, while Kelso proves to Jackie he isn't as clueless about the two of them as she thinks he is. On the day of the wedding, Donna and Eric decide to have sex for the first time. Maud Adams guest-stars, appearing as a bridesmaid to Tanya Roberts (portraying Midge), along with Kristina Wayborn (her Oc
After Eric and Donna have sex for the first time, Eric is dismayed to discover he was "awkward and weird." Meanwhile, Red gets his first paycheck from Price Mart and celebrates by purchasing a motorcycle, which Kitty objects to - at first.
Red tells Eric to go out with Kitty so they can spend some quality time together, while Hyde is confused as to why a girl from a previous blind date is now going out with Fez. Meanwhile, Donna notices a stirring jealously from Jackie towards Fez's new girl.
Eric and Donna are caught having sex in the back of the Vista Cruiser by the police, which, of course, leads their parents to find out. This leads Kitty to becomes depressed and bedridden, as she cannot cope with the fact that Eric is growing up. Meanwhile, Kelso installs a new CB radio in his van, leading to he, Hyde and Fez meeting some women.
Kelso finally decides to break up with Laurie, but after she requests a goodbye kiss, Jackie catches them in the act and breaks up with Kelso. Meanwhile, Eric inadvertently runs over Donna's cat, Mr. Bonkers, and Fez is sent to the hospital after experiencing sharp, stabbing pains in his abdomen.
Kelso wants to win Jackie back by writing her a song, while Jackie surprisingly turns to Hyde for comfort. Meanwhile, Red, Kitty and Laurie spend the weekend with their bitter Aunt Pearl (Connie Sawyer), and Eric and Donna experience communication problems.
Fez finally asks Jackie out for a date, but it doesn't go as he plans. Meanwhile, Eric and Laurie's sibling rivalry heats up as embarrassing secrets about one another are revealed, and Red is upset when Kitty reveals she pawned his mother's necklace to buy groceries.
Eric and Laurie quit going to church, which worries Kitty, who decides to invite their pastor over in an attempt to change their minds. Meanwhile, Jackie becomes attracted to Kelso when he starts growing a beard - which the rest of the gang ridicule.
Red redirects his anger away from Eric onto Earl (Robert Clendenin), one of his slacker employees at Price Mart. This makes Eric happy until Red fires Earl, leaving Eric to question his father's work attitude. Meanwhile, Kelso begins dating Laurie again and the gang isn't too happy with his choice.
Hyde teaches Jackie to be Zen when Laurie insults her, leading to Jackie developing feelings for Hyde. Meanwhile, Red finally finds out that Kelso is dating Laurie and decides to set him straight.
Eric is jealous when a picture of Donna mooning the camera appears in the yearbook. Bob is still uneasy knowing Eric is sleeping with Donna, and Jackie's constant affection for Hyde annoys him to no end. Eventually, when Jackie is busted by the police with marijuana, Hyde takes the blame for her, landing him in jail.