It's time to celebrate the Holidays at Greendale and with her divorce taking away her real family, Shirley is throwing a Holiday party for the gang after their Spanish final. However, when Jeff stands up to a bully (Anthony Michael Hall) to defend Abed, the bully makes it his mission to find Jeff. He comes to mess with Jeff while he's taking his Spanish final, and, of course, Senor Chang allows it. Jeff agrees to meet him outside by the bike racks to fight.
The gang trains Jeff in how to fight and tries to keep it from Shirley until she walks in on them. She bans anyone who goes to watch the fight from going to her Holiday party. Everyone but Jeff goes to the party instead and eventually Britta stands up to Shirley and the gang follows her to the fight. At the fight, Shirley sees Jeff try to talk his way out of the fight using "What Would Shirley Do" as his thought process. When the guy punches Jeff anyway, Shirley encourages him to fight and the whole gang hops in against the Bully and his cronies.
After the fight, which they won, Senor Chang comes in to tell them they all passed.