- Rebecca is in a reflective mood after Woody and Kelly's wedding. Rebecca vows to change her life. Her symbol of change is stubbing out the cigarette she is smoking, the last cigarette she vows to ever smoke. After that act, she dumps the cigarette filled ashtray into the wastebasket in the bar office. The next day, Sam, called in by the fire department, arrives at the half burnt down bar. Hysterical, Sam really wants to believe this fire is just another gag by Gary, but the reality of the matter sinks in. Once he realizes that he has insurance to cover the damages, Sam settles into the mindset of rebuilding the bar, but he still wonders what caused the fire. The fire marshal tells Rebecca that the cause was a smoldering cigarette in the wastebasket in the office. Rebecca knows that she once again was the cause of this major screw-up. Others devastated by the fire are Norm, whose "home" is damaged, and Cliff, who had a bagful of undelivered mail stashed behind the bar, which is now burned to a crisp. After Rebecca lies to Sam, telling him the cause of the fire was faulty wiring (which Sam is kicking himself for not fixing, although meaning to do so for years), he finds out that his insurance deductible is $25,000, money he doesn't have. Trying to get a loan, Sam is turned down by every bank in town. He has to resort to Plan B: cashing in his baseball pension, maxing out his credit cards, moving into a cheaper rent apartment, and selling his beloved Corvette. Will Rebecca finally admit to her role in the fire, and if so, will Sam forgive her?—Huggo
- After Woody and Kelly's wedding, Sam, Rebecca, Carla, Norm, and Cliff stop back at Cheers to return the items they brought for the catering they did.
In the main office, Rebecca thinks of how Woody and Kelly are starting a new life, and vows to do the same. She plans to quit smoking, and after stubbing out her cigarette, empties the ashtray in the waste basket before leaving.
The next day, Sam returns to the bar, only to find half of it burnt down. In a state of shock, Sam at first assumes this was some sort of prank by Gary from 'Gary's Olde Towne Tavern,' but the firemen assure him that this is real. The fire also has damaged a bag of mail Cliff forgot to deliver, and Norm's " home," resulting in Norm trying, and failing, to hang out at Gary's Olde Towne Tavern until Cheers is up and running again.
As Sam wonders what could have caused the fire, the Fire Marshall tells Rebecca that it was started by a cigarette in a trash can in the office. Rebecca is too scared to tell Sam that she was responsible for the fire, even though Frasier overhears her and the Fire Marshall talking. Frasier recommends Rebecca tell Sam the truth, or she'll be wracked with guilt. Rebecca almost gets the nerve to tell Sam, but instead claims the Fire Marshall said the fire was caused by faulty wiring.
Sam believes her and grows even more despairing, now feeling this was all his fault. Sam then finds out his insurance deductible is no good, and goes to every bank in town hoping to get a loan. However, all his attempts bear no fruit.
At the end of his rope, Sam then hits on the only means possible to him. He cashes out his baseball pension, maxes out his credit cards, moves into a cheaper apartment, and sells his beloved Corvette.
Hearing everything he's done, Rebecca finally breaks down and confesses that it was her that caused the bar fire. This revelation makes Sam incredibly upset, causing him to yell at Rebecca and demanding she leave the bar and never come back.
Rebecca returns later on, claiming she has come with a check that contains her life savings, feeling she owes this to Sam for what she did. Even though he is still a little upset, Sam offers Rebecca her old job back, and she tearfully accepts. When she asks why he would do such a thing given how stupid she's been, Sam explains that he remembers after he previously had nothing, Rebecca had given him a job at the bar. Sam now considers them even.
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