A typical morning at the family-run New York department store Berrenger's has family patriarch Simon at odds with his son Paul over a proposed merger, naive Ohio transplant Cammie starting her first day on the job and a treachorous in-law scheming to help a rival family destroy the Berrenger empire.
For Gloria's Benefit
Julio searches for a way to finish the Julian Morrell dress order with his sister Ana's help, Cammie dates John, Gloria prepares for the hospital benefit fashion show and Melody undermines Shane's chances of being named president. Danny pressure the Treasury Department to cut through red tape to let in a Hong Kong shipment.
Of Boardrooms & Bedrooms (a.k.a. Paul's Small Victory)
Shane gets a tongue-lashing from Simon about her disruptive relationship with Paul, Cammie's confused by Laurel's sudden hostility, Babs is stung by Simon's conviction she doesn't have what it takes to make a business successful and Julio panics when Babs plans to examine the books.
Fame & Misfortune
In Los Angeles, Danny tries to help Shane find her daughter, who was kidnapped by her ex-husband five years earlier. Julio makes a bargain with a factoryowner to get the Julian Morrell dresses done, but Todd pulls the successful line from the salesfloor in an attempt to make Shane look bad.
Seduction (a.k.a. Damsels in Distress)
Paul and Gloria's son David tries to reunite his folks, an enthralled Simon makes Laurel the lead model in a big ad campaign, Paul decides to investigate Danny and Ana worries when she learns who Julio's new business partner is. Melody plots to reveal her and John's relationship to her mother, but catches Cammie instead.
David takes a few lessons from his rule-bending grandpa while Paul wonders what to make of the news that there are no records of Danny's existence. Todd is named comptroller and Cammie is put in charge of the new Julian Morrell shop, infuriating Stacey.
Paul discovers Danny is the owner of Trans Allied and the force behind the impending merger. Simon woos Laurel, Danny offers Gloria power and a position with his company if she votes for the merger, Babs blackmails Mr. Allen.
Best Laid Plans
Danny and Gloria join forces to gain control of the store, Shane and Paul reconcile, Simon's increasing infatuation with Laurel gives Danny a lever and Frank is beaten when he questions the illicit activity in the shipping area.
Mr. Allen demands his cash from Babs, who turns to her father for help. Treasury Agent Chapman kills himself and the newscast on the dress line turns into an airing of the sex tape of him and Laurel.
Laurel vanishes in the wake of the sex tape airing, Simon admits he was wrong about Danny, Paul orders Todd to rehire Frank at the loading dock and Cammie argues with Billy over his gambling debts. Danny rails to his grandfather, revealing the root of his obsession with the Berrengers: he believes himself to be Simon's rejected bastard son.
Simon convinces Laurel to stay with him until the scandal dies down, Shane and Paul plan to wed, Babs catches wind of the loading dock problems, Danny gains part ownership of the Julian Morrell line when Mr. Allen sells out and tells Shane he'll find her daughter if she marries him.
Simon tells Melody there are several possibilities for president, Julio and Barbara discuss finances for their new dress line, Billy's gambling problems resurface and Danny offers to help clear the red tape Shane and Max have encountered in Hong Kong.