Darryl asks Michael for a raise, and Michael is equipped with different "tactics" to gain an advantage in the negotiation. However, Darryl points out that Michael is wearing a women's suit, which distracts from the focus of the conversation.
The Democratic White House is at odds with a Republican Congress that is looking to run the table. President Bartlet is arriving to agree to a continuing resolution on budget negotiations. The White House and Congress previously agreed to a 1% cut, but the new Speaker of the House changes the terms last-minute and gives President Bartlet an ultimatum.
Kahmunrah and Larry try to convince the other person to give over his possession first, but neither person trusts the other. Kahmunrah then tries to set rules on how Larry can behave, but Larry ignores them.
Max Zorin presents a plan to monopolize the microchip industry in Silicon Valley. His terms are non-negotiable and arguably unreasonable. The terms are that each person pays him $100M and half of their net income. As a response, Max does not hesitate to dismiss anyone who does not want to be part of his cartel plan.
The Nanny works part-time instead of full-time but charges Jack for her full-time services. Jack tries to negotiate with her, but due to her competitive negotiation style and non-verbal intimidation, he ultimately gives her the full amount.