George Bluth Sr. gets a visit from a rabid female fan who may be in love with him. George Michael is interested in his teacher, and so is his father. Gob tries to get revenge on Michael for trying to steal his girlfriend.
Michael Bluth denounces his family after George Sr. escapes to Mexico with his secretary Kitty. But when Michael announces plans to move to Phoenix, Barry informs him that he cannot leave California or he will face prosecution for his father's crimes. While Michael scrambles to find the company checkbook, Lucille signs Buster up for the Army, and Lindsay and Tobias institute an open marriage.
Michael's new business model backfires when GOB suggests that they build a fake house in two weeks. Meanwhile, George Sr. turns up in Mexico, only to be captured by prison guards who have been injured by a shoddy device he tried to market in Mexico years earlier.
Michael gets a lead that his father has fled to Mexico and takes along a group to retrieve him. In the meantime, he tries to connect with George-Michael's girlfriend, Ann, and Buster tries to escape going off to the army by stowing away.
George is declared dead in Mexico and the Bluth family holds a wake for their dead family member. Meanwhile, George isn't dead and has returned to the USA, only to be found by a newly dumped George Michael.
Some unfortunate pictures of Tobias wind up on the internet, which the military mistakes for pictures of Iraq and proof that the Bluth Company was building houses over there. Wayne Jarvis, the family's former attorney, makes Michael an offer he cant refuse. Meanwhile, Buster seeks GOB's help to provide motivation for his Army training.
While Buster looks for ways to get out of serving in Iraq, Lindsay's quest to score a date at the Bluth Company Christmas party backfires after GOB's sexual harassment speech. Michael and Maeby get in trouble singing Afternoon Delight, but are quickly overshadowed by Oscar and Lucille's afternoon delight.