Mr. Hooper, who has taken the day off, enters his store to see David reading while on the job. But since there haven't been any customers, and when he sees that the reason why David has been reading was because he has to study for a law school exam, Mr. Hooper lets him take the day off studying in the Arbor Area while he goes to work.
Beat the Time: Guy Smiley hosts "Beat the Time". In order to win a cookie, Cookie Monster has to bring in three things that rhyme with the word "rain" before the hand goes around the clock. They turn out to be an old man's "cane", a "chain" (to which Frazzle is attached), and finally a "train" which destroys the set.
Big Bird comes in to sit with David in the Arbor Area. Big Bird proceeds to study about the letter U as he takes out a ukulele and an umbrella out of his school bag for visual demonstration. David agrees to let him study with him as long as he is quiet...until Big Bird does something else that begins with U : going UNDER the table.