Plot

George gets a job at Elaine's office and gets involved with the cleaning woman. Elaine's boyfriend is a recovering alcoholic who falls off the wagon because of Jerry's carelessness. George buys Elaine a marked-down cashmere sweater.

As a thank you for getting him a job at her own place of work, George wants to get Elaine a thank you gift. When he sees a cashmere sweater marked down from $600 to $85, he's immediately interested. The only problem is that there's a red mark on the front which everyone can see and annoys Elaine to no end. At his new workplace meanwhile, George's tryst with the cleaning lady begins to have ramifications. So does the fact that Elaine's boyfriend falls off the wagon after Jerry mixes up the glasses on a table at an office party and he drinks liquor by mistake.—garykmcd

Elaine gets George a job at Pendant Publishing. To repay her, he buys her an ostensibly expensive, cashmere sweater, that has a minor flaw (a red dot), for which it was marked down considerably ($85 marked down from $600). The flaw is visible to the characters but not to the camera. Elaine spots it and becomes furious at George and immediately returns the cashmere sweater to him.

After meeting Elaine's boyfriend Dick (David Naughton), and feuding off-screen, Jerry inadvertently reintroduces Dick, a recovering alcoholic, to liquor. Jerry and George had gone to Elaine's office party when they found her watch under Jerry's sofa. There Elaine gets George to meet her boss, while Dick meets Jerry. Jerry was holding Elaine's drink and keeps it drink on the table, and later Dick picked it up. They were both drinking cranberry juice, but Elaine's drink had Vodka in it.

This causes Dick to "fall off the wagon", thus losing his job at the same publishing company where George and Elaine work. Even though Jerry accidentally left the drink nearby, Elaine accuses him of doing it on purpose. Elaine also tricks George into confessing that he bought the sweater knowing that it had a red dot on it, so he could buy it at a massive discount. Elaine says that Jerry already told her, and George gets livid at Jerry, when Jerry hadn't said anything at all.

Later, a drunk Dick heckles Jerry during one of his stand-up comedy acts. While George is working at his new job, he becomes sexually attracted to a cleaning lady named Evie (Bridget Sienna) and has sex with her after they both drink "Hennigan's" Scotch, which is a recurring brand in the episode (and series).

The next day, Evie gets upset over what happened the previous night and threatens to report what happened to the boss of the company. George tries to compensate with her by offering the flawed cashmere sweater. Evie is extremely overjoyed by the gift, launching into an emotional story about her first cashmere experience. Unfortunately for George, she then notices the red spot, thus consequently getting him fired by Mr. Lippman (Richard Fancy) (Jason Alexander has said that he considers this scene to be the defining moment for his character, specifically the way in which George reacts to the situation). George basically pleads ignorance on the whole matter and says that he wasn't aware that "this type of thing was frowned upon".

As George is packing his things in the office he is met by Elaine and Jerry. After getting into an argument, they suddenly hear a drunken Dick rampaging through the office hallway, coming to gain his revenge on Jerry for losing his job. The three quickly hide under George's desk and wait as the drunkard approaches them. Just then, George offers the cashmere sweater to Dick, this manages to calm down Dick's rage until he sees the spot.

The episode ends when the viewers see Jerry doing his usual last part of his stand-up comedy act before the end of the episode. Dick is among the audience, happy, sober, and with a non-alcoholic drink in his hand. Jerry and Dick are seen getting along, apparently putting their feud behind them although the episode does not explain how this happened.