Jerry is asked to explain to his parents why he does not wear the watch they gave him. Morty Seinfeld, Jerry's dad, thinks his wallet is stolen out of the doctor's office.
Meanwhile, George Costanza meets the wealthy parents of Susan Ross, the NBC executive he has started to date. George negotiates the deal with NBC and winds up getting a box of cigars from Susan's father, but the deal with NBC is lost. The cigars are given to Kramer, who immediately uses Jerry's stove to set his hair on fire.
Notes about Nothing
The Wallet is continued in "The Watch". It is the only two-part episode not separated by a Part 1 and Part 2 in the title.
Morty's wallet would be found in season four's finale, "The Pilot".