Phyllis finds out that Lars has been having an affair with Sue Ann Nivens, the star of WJM-TV's The Happy Homemaker show.

Mary invites Congresswoman Geddes to a fancy dinner at her home, trying hard to ensure that everything is perfect.

To relieve her boredom, Mary jokingly writes a humorous obituary of one of the people in the WJM-TV file. Coincidentally, the same person dies the following day and the obituary is read on the air. Lou has no choice but to suspend Mary, but she threatens to quit in response.

Lou gives Mary the task of finding him a date for an awards' ceremony. A name mix-up means that Lou winds up taking out an 80-year-old woman.

After a heavy self-promotion campaign, Ted wins his first Teddy Award. When Walter Cronkite comes to the newsroom, Ted assumes that he will be hired by the networks.

Lou is closing in on fifty and today is his birthday. Mary can't stand the thought of the now-separated Lou celebrating his birthday all alone, so she arranges a surprise party for him. That evening, she invites Lou over for a drink and the doorbell rings just as he tells her how much he appreciated her not throwing an office party for him that afternoon. Gordy is at the door with an envelope...full of hats. Others are out in the hallway, too. Lou is furious and tries to get out using the back door...but there is no back door. Mary asks Lou's permission to invite Murray in. He enters, miffed at Lou's actions. Next Rhoda, and finally Ted, get to come in. Lou admits that he hates displays of affection...then reluctantly agrees to let the remainder of the guests in. While they all file in, he files out and down to MacKluskey's bar where....they throw a surprise party for him. Later he returns to Mary's place to apologize...evidently the guests opened his gifts (at Ted's urging) and they a

Ted joins Mary at a night-school class in creative writing, and winds up plagiarizing her assignment.

Lou and Rhoda find they have a lot in common and begin seeing each other on a casual basis but everyone assumes that the romance is serious.

Mary and Rhoda are given permission to develop a new show for WJM but their dreams begin to fade when they find out that the hosts will be Ted and Sue Ann, who both begin to interfere with their plans.

On the advice of their marriage counselor, Lou's wife, Edie, decides to move out. Lou is heartbroken by the prospect.

Mary begins dating the anchorman from Minneapolis's top news show and becomes ashamed of WJM-TV's smaller news operation.

Rhoda tells the secret of Mary's that she never graduated from college, as she claimed on her job application, and their friendship is suddenly put at risk.

In this episode Dick Gautier guest stars briefly as Ed Cavenaugh, a sleazy sportscaster. Have a look at his website at Dick Gautier.com. Gordon Jump, later of MTM Enterprises' ""WKRP"" is seen for a few minutes playing one of the sportscaster applicants. When Ted asks Mary to order tweezers and other assorted supplies for his personal use, she gets more than a little flustered and asks Lou to give her something challenging to do. At the drop of a hat, he assigns her the task of hiring a new sportscaster...and firing the old one. In order to let Ed Cavenaugh down easy, she invites him to lunch and he tries to mesmerize her with his suavity with the opposite sex. Then Mary learns a lesson: don't fire the current sportscaster until you've hired another one. After days of screening applicants, listening to demo tapes and perusing their eight-by-ten glossies, she decides on Andy Rivers.

Rhoda begins dating the boss of Hemple's and falls deeply in love with him. She wants to tell him how she feels, but Mary warns her to take things slowly.

Mary goes to a singles bar to research a documentary, but on the night the crew arrives for filming, the same people who were willing to tell Mary everything don't want to be seen on camera.

Rhoda and Mary fly to New York for Rhoda's younger sister's wedding. Rhoda's mother downplays the whole thing fearing that Rhoda is envious.

Phyllis persuades Ted to stand for local government. Ted agrees and goes so far as to quit his job at WJM-TV.

Georgette finds Ted making out with a woman in his dressing room. She then decides to enter a nunnery, but the head nun talks her out of it.

Lou is still heartbroken over Edie's departure and asks Mary to help them get back together.

Murray's daughter, Bonnie, is looking for a job and Mary is persuaded into giving her one but Bonnie is not as efficient as everyone had hoped.

Phyllis, who has gotten her real estate license, persuades Lou to sell his house. However, Lou hasn't really made up his mind whether he wants to move.

Ted meets his father, who deserted him as a baby.

Mary's boyfriend is younger than she is and she and Rhoda discover there is a generation gap when they go and visit his friends at a party.

Mary's former boyfriend, Wes Callison, gets a job in the newsroom but his affection for Mary gets in the way of his work.