Eugene is suspected and accused of pulling the fire alarm, and it's up to a student jury to vote on the verdict, but Arnold's the only one who believes Eugene's totally innocent.
One day at P.S. 118, as students were going to their classes, someone pulls the fire alarm. Everyone runs out of the school, but Principal Wartz runs out telling them it was a false alarm. He searches the hallways and finds peanut butter smeared all over the fire alarm pull station and notices footprints from sandals on the floor, leading to the janitor's closet where Wartz finds Eugene Horowitz inside, thinking he was the suspect who pulled the fire alarm.
In the cafeteria, which has been set up to look like a courtroom and Principal Wartz presiding, he tells Eugene he's been caught pulling the fire alarm, but Eugene said that he didn't do it. Principal Wartz tells Eugene and his "attorney" Stinky Peterson that according to the school district by-laws, Eugene could only be expelled from school after being found guilty by a jury of his student peers.
In the library, as Helga went over the votes, she finds one vote stating "not guilty". Arnold reveals that he voted not guilty because he had reasonable doubt. Arnold was convinced that Eugene was innocent. Despite Helga's lack of patience because she has tickets to Wrestlemania, the student jury carefully goes over the evidence. But eventually, they find one piece of evidence that does not belong to Eugene: A Wankyland pencil, which was eventually revealed by Curly, who confesses that he set Eugene up for revenge for sharpening Curly's Wankyland pencil all the way down to the stub.
Back in the cafeteria, Principal Wartz announces the student jury's verdict. The "court" finds Eugene innocent.
Principal Wartz takes Curly away to his office for admitting he pulled the fire alarm. As Curly is taken away, he pulls the fire alarm again.
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