Pendelton University has a new chancellor, who causes anger when he cuts funding and takes away tenure, so Dick holds a meeting, in which he convinces the faculty to resign en masse. Unfortunately, the chancellor accepts the resignations and leaves everybody in the faculty, bar Dick - who withdrew his own, without a job. Upon finding out about his betrayal, the faculty protest outside Dick's classroom and Mary refuses to be seen with him. Meanwhile, Tommy begins working at a pretzel store with his girlfriend Alissa, but begins to dislike working with her and gives Sally and Harry free pretzels, with which they start their own business right in front of the store.
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