The gang takes interest in an upcoming bicycle race in which the winning team gets a trophy. Rudy is able to enter the event with his new bike, but it gets wrecked by Bobby Hansen, who backs into it with his car and refuses to take responsibility for his misdeed. Rudy is advised by a police officer to take the matter to a small claims court, which can help settle such issues without the need of expensive lawyers. With Fat Albert as his witness and the necessary evidence, Rudy has a strong case and Bobby makes things worse for himself by lying under oath. As a result, Bobby's family pays for a new bicycle just in time for the gang to enter the race. They're pitted against Bobby's gang, who seeks a victory against Rudy. But with good racing skills and the ability to overcome his opponent's cheat tactics, Rudy is able to win the last leg of the race and get the trophy for the gang.