While home for the holidays, Will is dismayed by Bailey's new relationship with Annie as Justin talks about how great Yale has been. So, as Julia stretches the truth about her gift wrapping job at the department store, Bailey and Annie celebrate her passing the insurance adjusters exam. Meanwhile, Charlie convinces Kirsten to let him tag along on a trip to retrieve some old furniture. Despite his being badly in need of some food, Charlie insists that they not turn back. And to make sure they can't, he hides Kirsten's car keys, forcing them to stay the night.
After seeing her being berated by an angry customer, Justin realizes that Julia has been lying about her job. And as Will and Sarah get Bailey to join them for a holiday party, Annie is fired. As Bailey tries to console the newly jobless Annie, Sarah's party gets an unexpected boost when someone spikes her egg nog. And after getting drunk without knowing it, Justin tells Griffin that Yale isn't all that he's claimed, unaware that Julia is listening nearby.
When Julia confronts him about his lies, Justin reveals that he knows she's been lying, too. After defending his choice of girlfriends to Will, Bailey promises the distraught Annie some help getting through the holidays as she looks for a new job. And as Justin and Julia agree to level with each other about their miserable lives, Will tries to apologize, only to find that Bailey isn't interested. Finally, as Charlie and Kirsten make their way back home fully aware that their feelings for one another are still there, Julia returns home with Griffin to discover a Christmas surprise.
Directed by: Jan Eliasberg
Written bv: Mark B. Perrv