Michael falls for his George Michael's ethics teacher, whom his son also has a crush on. Meanwhile, Lucille adopts a 14-year old Korean boy, and George Sr.'s "Caged Wisdom" tapes have given him a new admirer.

When Michael discovers his family has been receiving paychecks without working, he forces them all to get jobs within the company. Lindsay questions his management skills, and Tobias checks himself in at George Sr.'s prison to research a film role.

Gob steals a file on the government's case against the Bluth Company that Maggie had given to Michael. Tobias is sent to Maggie's house to get evidence, George Michael tries to prove Maeby's fraud, and Lindsay fights to remove the Ten Commandments from the courthouse lawn.

Gob attempts to make good on his promise to make the family yacht disappear. Meanwhile, Lindsay and Maeby try to track down Lindsay's grandmother, Tobias seeks George Sr.'s respect, and Michael attempts to fire Kitty, who claims to have information that could bring down the company.

George Sr. uses Gob's bachelor party as an opportunity to set up his accountant in a compromising position so that he can blackmail him. Meanwhile, Michael tries to prove he's a fun guy, and the Funkes reunite their family folk-music band.

Michael takes Maeby to work with him on Take Your Daughter to Work Day. After being slighted by Michael, Tobias, George-Michael and Gob all go to the mall to prove that they are just manly. Oscar takes Lucille and Buster to Annyong's soccer game.

In the first season finale, George Sr. has a heart attack, and Maeby is jealous when George Michael likes another girl. Meanwhile, Lindsay decides to leave Tobias until a book he wrote a long time ago becomes a gay bestseller, and Buster and Annyong compete over women.

Michael and George Michael leave for Phoenix but go back to ensure the family misses them. Lindsay wants to have an open marriage, which causes Tobias to try to join the Blue Man Group under the impression that they are a support group for depressed men. Lucille signs Buster up for the Army after being goaded by a Michael Moore look-alike. Gob becomes president of the Bluth Company.

Michael is increasingly frustrated over being abandoned by the family, and when the staircar is found in Mexico, Michael vows to find his father and give him a piece of his mind. Also, Buster spends time with Lupe's family and thinks he's in Mexico.

Michael must deal with a huge mole problem in order to salvage a major real estate deal with Japanese investors. In an effort to help Michael, Gob and Buster team up with George Sr.'s surrogate, Larry, to devise a plan and save the deal, but their plan falls apart in a big way. Meanwhile, Tobias mistakes a CIA agent for a CAA agent and inadvertently betrays the family, and Michael makes Rita a proposal she can't refuse. Frankie Muniz makes a cameo as himself.

After returning home from Iraq, George Sr. is finally cleared of all charges, and Michael is relieved to be the head of a successful company for a change. The real brains behind the madness is revealed, and just as the family begins to celebrate their victory, a whole new set of problems emerge.

Lindsay continues to push away from being a Bluth by embracing a relationship and finding a new career.