Newman trades Kramer a helmet for a radar detector. Jerry thinks Kramer is getting ripped off; later Kramer tells Jerry that the radar detector didn't work!
Jerry's car is broken and he takes it to a new mechanic. The new mechanic gives an estimate that Jerry believes is too high. George says, "Of course they're trying to screw you—that's what they do. It's because you don't know anything about what's going on under there!" George also says that Putty, Jerry's regular mechanic, wouldn't try to screw him. Reputation for honesty can overcome moral hazard problems.
Harold, a tax auditor, visits Miss Pascal at her store to audit her because she paid only 78% of her taxes for the year. She gives him a hard time and states that she intentionally did not pay taxes for spending that she does not support. Miss Pascal mentions some ways that the government spends taxes.
Charlie's father gets laid off from his job because a new robot at the toothpaste factory can perform his job more cheaply and efficiently. His job has been made obsolete by technology.