George starts to move on with his life after Susan's death. Susan's parents start a foundation in Susan's memory and want George to run it. Jerry runs into Delores and she tries to get back with him until she finds out that he broke off an engagement. Elaine takes over as head of the Peterman company while Peterman is in Burma. Meanwhile, Kramer becomes a karate instructor.
George begins to think that the foundation suspects that George was the one that killed Susan. To find out for sure, George hides a tape recorder in a brief case and leaves it in a foundation meeting. Elaine gets pressured from her friends to have a baby, but soon after she meets a man that wants no children and even has a vasectomy to prove it. Meanwhile, Kramer goes to Newman for advice when he finds himself attracted to Jerry's girlfriend.
Elaine makes new friends who are the exact opposite of Jerry, George and Kramer. Jerry dates a woman who is very beautiful but has 'man hands'. George finds a way to get into the 'Forbidden City', a place where models hang out. Kramer uses the bathroom at an office building and starts to work there.
George watches Elaine dance at an office party and notices how bad of a dancer she is. However, Elaine thinks that she is a great dancer until she watches a video of her dancing. Elaine tells a co-worker that George is a bad boy, which the woman finds attractive. To further his new image, he begins to drive fast, but his real self shows when is arrested for making a bootleg video. When Jerry gets tickets to a film premiere, Kramer talks Jerry helping him make bootleg videos of the premiere.
George thinks the woman at the photo lab is coming on to him when he finds pictures of a woman in his photos. Kramer sees that Jerry has a stereo that he doesn't like, so he helps Jerry get a refund on the stereo. To do so, he mails Jerry the stereo in pieces, and since Kramer insured the package, Jerry ought to be able to get money for the damaged stereo. However, Kramer's scheme doesn't go as well as he had planned. Meanwhile, Elaine tries to look at her medical records and has Kramer pose as a doctor to do so.
Elaine has to fire a man, but can't do it and ends up promoting him instead. The man that she promoted wears army fatigues and constantly talks about wars and battles. While working on the J. Peterman catalog, the man causes everyone to quit, leaving him and Elaine as the only employees. Jerry's new girlfriend has a friend who is being mentored by Kenny Bania, and later, Jerry becomes Kenny's mentor. Meanwhile, George learns about risk management by listening to tapes, and Kramer has Frank help him cook a Jewish meal.
Jerry receives his royalty checks for his appearance on a Japanese TV show and gets writer's cramp after signing them all. Kramer helps some Japanese tourists by finding them sleeping quarters in a chest of drawers. Kramer tries to show the tourists that Jerry's show would be a hit in Japan, but the tourists dislike Jerry after he has to hack them out of the chest of drawers. Meanwhile, Elaine's boyfriend loves a song that Elaine hates, so she tries to find a song that they'll both like, and George hires carpet cleaners for Yankee Stadium who Kramer think are in a religious cult.
Elaine lets George buy an expensive hat with her company expense account. She tries to replace the hat with a Russian fur hat, but has no luck. Later, Elaine heads to Burma to have Peterman authorize her expenses. Jerry and Kramer switch apartments when a new chicken restaurant opens across from Kramer's apartment. George develops a plan to leave things in his dates' apartments so he can have a reason to call them the next day.
George decides to abstain from sex with his girlfriend because she has a disease that would be complicated by sex. After not having sex for so long, George becomes smart and finds that he's wasted his intellectual talents in his constant pursuit of sex. Meanwhile, Jerry gets bumped from a local school's career day, Kramer opens a smoking lounge that causes some health problems, and Elaine dates someone who's almost a doctor.
George goes up against a survivor of the Andrea Doria shipwreck to get a cheap apartment. Though the panel originally leans toward giving the apartment to the survivor, George wins them over by telling them about his pathetic life and his fiancee dying. Elaine dates a man who has trouble breaking up with women. Jerry and Newman team up to get rid of each other forever -- Jerry helps Newman deliver mail on Sunday so he can get a mail job in Hawaii.
Jerry bounces a check at a market and the owner puts it up for everyone to see. Jerry soon finds that the owner runs an underground cock fight, so Jerry and Kramer train Kramer's rooster, named Little Jerry, to beat the big rooster. Meanwhile, Elaine dates a man who prefers to shave his head, and Elaine tries to convince him to grow his hair back. George dates a convict who is serving time at a local prison.
Jerry's parents think that Jerry has run into financial trouble, so they sell the Cadillac that Jerry gave them to Klompus for 6000 dollars. Jerry then goes to Florida to get the car back, but ends up paying Klompus 14,000 dollars for it. Meanwhile, Elaine helps Morty get a job at the Peterman company and George, thinking he'll have a big inheritance, starts spending a lot of money.
George is teased at a meeting by Reily and can't think of a good comeback until it's too late. Determined to deliver his great comeback, George tracks down Reily, who no longer works for the Yankees, in Ohio and personally gives him the comeback. Meanwhile, Jerry buys a tennis racket from a man he thought was a professional tennis player, Kramer wonders what his life would be like if he was in a coma, and a reviewer named Vincent becomes interested in Elaine.
George interviews candidates for the foundation money. He doesn't find anyone he likes until he finds a boy who is similar to him and agrees to give the boy the scholarship. Later, George has a run-in with a gang, The Van Buren Boys, and by accident flashes their gang sign. The gang think he is one of them until George goes to far to prove that he is. Peterman, after deciding his biography would be boring, buys the rights to some of Kramer's life stories for 750 dollars. Jerry meets the 'perfect' girlfriend.
Elaine decides to have an alter-ego when a co-worker mistakenly calls her Susie. Susie gets blamed for everything at work and Elaine becomes more popular because she is the only one that ever can find Susie. However, Elaine has to fake Susie's death when Peterman wants to see Elaine and Susie in his office. Kramer places a bet in Jerry's name and the bookie comes after Jerry, and Kramer causes George's girlfriend to leave him.
Jerry accidentally drops his girlfriend's toothbrush in the toilet and she uses it before he can tell her about it. Not wanting to tell her the truth, Jerry tries to sterilize her mouth and refuses to kiss her. Once he finally tells her, she drops something of his in the toilet and won't tell him what it is, sending Jerry into a frenzy. Meanwhile, Kramer adopts a highway and spends his time keeping it spotless. He starts to think that the lanes are too narrow, so he covers the current lines with black paint. Elaine tries to order Chinese, but the restaurant won't deliver to her side of the street so she finds another way to get the food.
The gang alienates Elaine when they find out that she didn't like The English Patient. She lies to Peterman about seeing it, so he arranges for her to watch it. Kramer teaches a group of Dominicans about communism, which leads them to revolt on Kramer. Jerry goes to Florida to visit his parents where an elderly man challenges Jerry to a weightlifting competition. Meanwhile, a woman mistakes George for her boyfriend.
George begins to nap under his desk and everyone assumes that he is working because no one can find him. Steinbrenner decides to wait in George's office for him to return, so George has Jerry call in a bomb threat to get Steinbrenner out of his office. Elaine's boyfriend gives her a mattress, which she then gives to Kramer because it was a 'commitment gift'. Meanwhile, Jerry has his kitchen redone and Kramer takes up swimming.
George's girlfriend uses the phrase 'yada yada' to skip to the end of stories she tells, which George sees as the best part of her stories. Elaine agrees to be a character witness for a friend who's trying to adopt. Kramer and Mickey go on a double date, but have trouble recalling who's dating who. Jerry's dentist converts to Judaism.
Kramer and Newman both plan parties to celebrate the new millennium, Kraminnium and Newmanium, respectively. Kramer and Elaine team up to hurt business at a clothing store. George thinks that the Mets have a job for him, so he tries his best to get fired. But Steinbrenner thinks that George was offered a job with Tyson chicken, so he negotiates a deal to keep George. Meanwhile, Jerry worries about what position his girlfriend put his number on her speed dial.
A muffin shop starts selling the tops of muffins, but runs into problems when the muffin bottoms begin to pile up. Kramer tries to get rid of the bottoms for the shop, but is turned down by everyone he offers them to. Jerry decides to shave his chest, but is warned by Kramer not to do so. Kramer gives a tourist a tour of Peterman's life and has Jerry come along. Meanwhile, Elaine helps solve the muffin bottom problem.
George finds out that his severance pay will last him 3 months, enough to pay for a relaxing summer of no work. Jerry is invited to the Tony Awards, and Kramer sneaks into the event. He sits in Raquel Welch's seat and has to accept an award for her. Elaine comments that a co-worker walks like a stiff, and her co-workers hopes that it will cause a cat fight.