Medical student Lisa Jones is hired by Peter as a waitress at the Lighthouse despite insulting his two sons during the interview. Scott is attracted to her right away, but she's doesn't think much of him. Jason tries to build up his brother, telling Lisa that Scott is training for the Olympics. Scott isn't happy with the lie until he see that it impresses Lisa. She introduces him to Gary of the UCLA swim team and a race is arranged.
Jesse, a member of Peter's 1970s band the Disco Dudes, shows up at the Lighthouse. He's still in the music business and Jason, recently promoted to night manager at the restaurant, wants to play his songs for him. Jason begins skipping work to hang out with Jesse and Peter is concerned about his son following Jesse's irresponsible example. Jason sells his laptop to buy a new guitar for Stads' lifeguard benefit concert.
The Lighthouse is losing business to another restaurant, the Aloha, and Peter can't figure out why, since their food is terrible. He takes his sons to the restaurant to see what the attraction is. They quickly find out: it's the floor show featuring the sexy "Coconut-a-Go-Go Girls." They also find out that Murray has been there 21 nights in a row. Business is so bad for the Lighthouse that Peter may default on a loan. Murray offers to use some of his trust fund money to help out.
Things are going good for Jason, but not so good for Stads. He auditions for a coffeehouse gig and gets it; she is passed over for a promotion and is fired when she complains about it. To make her feel even worse, her hair dryer was responsible for an apartment fire. Stads comes by the Collins house feeling much better because she's decided to go to work in Europe for a year. Jason is jolted by this news.
Peter has been ignoring Scott's swim meets and now only three are left before the Olympic trials. Fearing that he's doing the same thing to Scott now that he did to him when he was younger, Peter now tries to get as involved as possible. He's taking care of Scott's diet, hiring a masseuse, and making Jason do all the chores.
Lisa receives a gift (a human skeleton!) from a secret admirer. Scott finds out that Murray is the one who sent it to her. Lisa needs an additional $1800 for tuition. Jason tells her about the swing dance contest at the Malibu Country Club with a prize of $2000. When she finds out Murray and family are all members, she gets him to be her partner for the contest.
After a successful audition before Alex's uncle the producer, Jason gets the go-ahead to make a demo recording. He's surprised to see that the producer sent to work with him is a woman: a young, attractive one. Jason works with Kendall and there seems to be a spark between them. Stads calls from Europe. Jason tells her about the demo but not that the producer is female.
Peter is thrilled to be named businessman of the year by the Malibu Business Association. Murray is excited that his favorite actor Josh Denmark is in Malibu shooting a film. Jason recalls that he knew Josh a few years back in music camp. Together they sneak onto the set to see Josh and disrupt the shoot. Josh remembers Jason, the two reminisce and plan to meet again. Later Josh comes by the Lighthouse with female fans following him. Jason offers to let Josh stay at the Collins house to escape the crush of fans. Jason asks his dad after the fact if Josh can stay and ...
Jason has been having a great time with Alex and he admits to Murray that he'd like to date her. However, his film star friend Josh Denmark tells him that he too would like to date Alex. The two have competed for the same girls in the past and both agree not to date Alex. Murray, though, encourages Jason to ask Alex out, and he takes his advice. But it seems that Josh has already asked Alex out and she accepted.
Scott is excited about working with a new therapist, Ted from California University, and he believes against all odds that he will be in shape for the Olympic swim team trials. Trying to rush along his rehabilitation, he persuades Ted to let him get back in the water. Scott says he feels great and his comeback is progressing very rapidly, but he's been taking medication to ease the pain his shoulder is causing him.
Scott tells Lisa that it's time that they quit playing games with each other and go out on a date. To his surprise, Lisa quickly agrees. Murray's friend Tuber is marrying Lisa's friend Kim, and Murray and Lisa are to be best man and maid of honor. Traycee tells Murray that by tradition, he and Lisa should fall in love after the wedding. Murray then tells Scott that his passion for Lisa has been rekindled.
Jason is on Cloud 9 when the news comes that his CD will be released and he's even happier when Steve Lansing from the record company gives him a $20,000 advance. He starts spending the money lavishly, which concerns his father Peter and brother Scott until he buys them gifts too. However, Peter and Scott are surprised when Jason suddenly gets a new apartment, then they are unbelieving when his son blows off work at the Lighthouse for photo sessions and interviews.
Lisa and Scott are now a happy couple when NBA star Troy Douglas comes to the Lighthouse to visit his old girlfriend Lisa while he's in town. No one is more excited to see him than Scott. Troy asks Lisa to have dinner with him. Meanwhile, Peter is planning a camping trip with his sons and Murray. Alex and Traycee want to go along. When the men express doubt about their abilities in the wild, the girls challenge them to see who are the better campers. Scott is suspicious of Troy's motive with Lisa and begs off the trip. The girls arrive at the site before the men and ...
Peter tells his sons that he's ready to retire and for them to take over operation of the Lighthouse. Jason and Scott are not thrilled with the idea their father tells them they'll get a 50% share of the profits. Lisa, working there as a waitress, is appalled at the prospect. At first, Peter is happy fishing and planning trips to other countries, but he finds that the boys are so absorbed in improvements and promotions for the Lighthouse that they have no time for him.
Scott is surprised to find that Jason is smoking again after supposedly giving it up months ago. The boys are happy when their dad brings home their favorite uncle, Charlie, who is in town on military business. After Peter catches his son smoking on the beach, he asks Charlie to speak to Jason about it. Charlie is reluctant, because he's still a smoker himself. Peter, Scott and Murray try to help the pair break the habit, but nothing works and they both continue to sneak around smoking.
Traycee is driving Lisa crazy as a roommate. Traycee's late-night parties make it hard for her to study, she doesn't remember to give Lisa her phone messages, and she interrupts Scott and Lisa when they are alone. Frustrated, Lisa types up a list of house rules for Traycee to follow, which leads to a big blow-up between the roommates and Traycee says she'll move out. Meanwhile, Murray has gained Alex's admiration after he rescues a baby sea lion.
Peter wants his son Jason to take out his friend's daughter Maggie Taylor while she's in town from New York. Jason is reluctant, since he remembers her as a geek. Scott remembers how Jason stood her up for the freshman prom back when they lived in New York. Jason bribes Murray into going out with Maggie in his place, but he changes his mind when she shows up and looks quite attractive. Meanwhile, Murray brings some puppies to the Lighthouse that are homeless after their animal shelter was damaged.
Scott and Lisa are in the same creative writing class together and she is flabbergasted when their instructor Ms. Grant gives Scott an A on an assignment she received a C on. Lisa talks to Traycee about it, who suggests that the attractive teacher might be romantically interested in Scott. Lisa defends Scott until she see him and Ms. Grant talking on the beach after they've run into each other. Later at the Collins home Lisa apologizes to Scott with kisses, but she worries again when he tells her Ms. Grant invited him to a writer's workshop.
The whole gang is gathered at the Collins house playing video games and volleyball. Lisa realizes she missed an important test at school. Upset, she blames the group of "slackers" for being a bad influence on her. Several flashbacks to past episodes show examples of their bad ways. The Collins boys counter with some examples of her imperfections, illustrated by flashbacks.
Lisa has been hoping to study with Dr. Harris, and when she learns the doctor is coming to Malibu and wants to set up an interview with her, she freaks out. She insists there will be no parties at the apartment until after the interview, but Traycee has already arranged a party for the cast and crew of "Malibu Hospital". Traycee and Scott thinks Lisa is taking this business way too seriously and arrange to play a joke on her.
Peter is not happy when a surprise birthday party reminds him of his age. Murray gives him some bungee-jumping tickets and he decides to do it, hoping to feel younger, but the next day at the Lighthouse he regrets it. Traycee tells Scott and Jason that their dad may be having a mid-life crisis and suggests he meet her mother Candee, a former supermodel who's in town, who maybe can provide some companionship. When the boys tell Peter about Candee, he doesn't like the idea--until he sees her.
Lisa arrives at the Lighthouse very excited; she's received a letter telling her she's been accepted for an internship in a hospital emergency room. Scott then accidentally cuts his hand, and when Lisa attempts to treat it, she faints dead away. Later, Lisa tries to convince herself that she must have had something wrong with her other than nerves that made her faint. But that night she worries about freezing up in the ER and destroying her lifelong dream. She has a bad dream about it, featuring Alex, Peter and Scott once again as the victim.
Jason and Scott offer to house-sit for Murray while he's away at a surfer's convention, but he tells them it's taken care of. The boys are curious as to why Murray has never invited anyone to his new apartment, so they wrangle the keys and directions away from Lisa and take her to check the place out. They find that it's a wonderful apartment with all sorts of great appointments like a jukebox and a talking vanity. Lisa is reluctant to go in until she sees the hot tub in the living room.
Lisa tries to find out what Scott has bought for her birthday but he won't tell. Traycee and Alex ask about the present and Scott tells them it's rollerblades. The girls tell him Lisa has her heart set on an expensive Tiffany watch. Later Lisa asks Scott for some hints as to what his gift is and she mistakenly concludes he bought her the watch. She's so overjoyed that Scott doesn't have the heart to correct her. Scott wonders how he will pay for the $800 gift. Murray suggests that he come with him to the "Guys a Go-Go" club and audition as a male dancer.
Lisa tells Jason and Traycee about the good feeling she gets from volunteering at the local Community Center and encourages them to do likewise. Traycee is ready to volunteer but Jason isn't interested until he sees some of the pretty girls from the center, especially Diana. Jason hopes to get some one-on-one time with Diana at the Center but she assigns him to be a "Big Buddy" for a local boy, Kenny. At first the two don't get along very well, with Kenny insulting Jason every chance he gets. But eventually they warm up to each other and Jason lets Kenny borrow his ...