After 12 years of turning Tony's back on Julia and Lance, Lance has a strong dislike about the truth that he can return to the vineyard as if nothing has happened. While Julia tries to please Tony, Angela and Lance become more concerned about their own responsibilities. The truth was revealed when Tony only came back to Falcon Crest to get Julia to make a brand new life, away from the vineyard. When Julia thought about that, she refuses to accept her ex-husband's offer, due to her unwillingness to leave with her family and friends in San Francisco. Also, Chase becomes more concerned about Maggie taking a job in San Francisco, as a newspaper writer, much in fact that she'd be working with his aunt's Angela's ex-husband, Douglas Channing (Stephen Elliott).

Chase and Cole accompany Lance on a trip to examine a remote piece of property that Angela is contemplating buying. As the wilderness property is only accessible by horse, Cole is injured in a riding accident. Chase stays with Cole, while Lance goes for help. After running into some problems, Lance finally leads a rescue team to Cole. After Vicky makes an innocent remark regarding a mental health clinic, Emma runs away from home, believing that she is going to be sent away because people think she's crazy. When Vicky discovers Emma hiding in an old springhouse, she befriends Emma, and ultimately persuades her to return home. Worried, Douglas Channing stays by Angela's side until Emma is found.

When Angela takes Cole to Rome to attend an important wine-tasting competition, she is surprised to find that Douglas is there, and hopes to rekindle the memory of their honeymoon spent there years ago. Initially, romance flares between Angela and Douglas; however, Angela devastates Douglas when she refuses his proposal to re-marry. Meanwhile, Cole has been given a collection of mysterious letters, which belong to an Italian relative and which underscore the enduring bitterness between Angela and Jason. Angela leaves Lance in charge of Falcon Crest to test him with the family business, but Lance painfully discovers that he's not as shrewd as his grandmother. Chase learns in the end, however, that Lance is not just a spoiled rich kid, but is a very dangerous person as well.

Angry with her parents for their excessive protectiveness, Vicky runs away from home to San Francisco, where she's lured into a wayward street life that she can't escape. Chase and Maggie frantically search for Vicky, unaware that Lance has introduced their vulnerable daughter to a woman connected with pornographic films. The Giobertis become stronger than ever when Chase and Maggie endure a difficult ordeal before locating Vicky. Angela toys with Douglas's emotions, playing him against a renowned painter and making Douglas look like a fool.

Angela, angry that Lance is working for his grandfather's newspaper in San Francisco and determined that he will marry Melissa Agretti (Ana-Alicia), plans to destroy Melissa's budding romance with Cole. Chase and Maggie, concerned about Emma's instability, persuade Julia to take her sister to a local psychiatric clinic. When Angela finds out, she tells Julia the truth about Emma killing Uncle Jason, which turns Julia against Chase and Maggie. At the same time, Chase uses his influence as a county supervisor to discover the real cause of his father's death.

Chase begins to make inquiries into the circumstances surrounding his father's death. Angela, in an attempt to foil Chase, has Philip mislead Chase into believing he might inherit Falcon Crest. However, Chase doesn't fall for her trickery. Following a party at the Giobertis, Cole's friend is killed in an auto accident after Cole refuses to drive him home. Angela attempts to force Lance to marry Melissa, who instead has become deeply involved with Cole. However, when Melissa learns she is pregnant, she tells no one.

Pressured by Angela, Lance proposes to Melissa Agretti with the consolation in mind that they dislike one another and that he knows Melissa will reject his proposal. When she surprisingly accepts his offer, Lance is forced to go through with the ceremony. Melissa has her own cunning reasons for marrying Lance, aside from her father and Angela's scheme to merge Falcon Crest with the Agretti Vineyards. When Cole fumes about the arrangement, Melissa assures him that her marriage to Lance won't interfere with their relationship. Another wedding almost takes place as Vicky and Mario decide to elope, but they change their minds at the last minute. Lance discovers that Melissa is pregnant.

While Emma draws closer to revealing the truth about Jason's death to outsiders, Chase steadily draws closer to learning the truth through his investigation. No longer speculating over his father's mysterious death, Chase finally gathers enough concrete evidence to go to the D.A., who in turn, calls for a coroner's inquest into Jason's death. While Angela attempts to impede this, she is forced to testify. Following his release from the hospital, Douglas tries to help Emma and escorts her to the inquest. However, before she can testify, Douglas has a fatal seizure and dies. After witnessing this, Emma runs off while Angela blames Chase. Angela learns of Melissa's pregnancy following a disastrous honeymoon and assumes Lance to be the father, despite his denial.