The season opens at a local cemetery, where we see the gravestone of George's late fiancée Susan in full view. While George wishes to move on from Susan's tragic demise, her parents want to keep her memory alive by creating a foundation, inspired by a Star Trek reference Jerry told them about Susan, which ruins George's newfound happiness. George is seen gazing at a portrait of a smiling Susan. Jerry breaks his engagement with Jeannie Steinman and reunites with Dolores (aka Mulva) from "The Junior Mint." After a nervous breakdown, J. Peterman runs off to Burma and leaves Elaine in charge. Kramer becomes a martial arts expert at a karate academy for kids and convinces Elaine that she can run the company, which she does by putting her idea for an "urban sombrero" on the cover. She then finds out Kramer was fighting kids, and realizes her disastrous mistake. Kramer gets beaten up by the kids from his karate class in an alley. Elaine finds out her urban sombrero has destroyed some people's lives. George finds out he would have inherited much of Susan's riches had they been married, but now he is stuck at the foundation as they are auctioned off. The same portrait of Susan which hangs in the room where the foundation meet now seems to be sneering at George.