Lucy has been acting out lately, and Kim and Louie disagree on how to confront her behavior — Louie gets mad and yells and Kim lets her have her way. Deciding that Lucy just needs some mommy time, Kim takes the day off of work, bakes her a cake, and let's her eat it for breakfast. When Lucy tells her it tastes like poop, Kim agrees with Louie that their child is "an asshole."

Desperate, Louie seeks guidance from his friends. Rich insists kids need to be talked to like equals, but when he tries this out, Lucy tells him he's ugly, which sends him skulking off like a wounded school boy. Despite Ellen's claim that their daughter is "naturally well-mannered," Walter shares their discipline secret: time outs. Louie quickly employs it, sending Lucy to the broom closet. But when she decides she likes it in there, Louie runs back to Walter's for more advice, and Lucy locks him out of the apartment.

Exhausted and beaten, Louie gives up and apologizes to his 4-year-old. "I'm supposed to know how to do this, and I don't. I think I really screwed it up." With this, Lucy finally breaks and hugs her dad. But by the time Kim comes home, she's shoveling her dinner onto the floor. "At least she'll do alright — assholes rule the world," Louie says. Rich shows up to read a note he wrote to the little tyrant, telling her how she hurt his feelings. "I'm sorry," Lucy says sincerely. "She's a good kid," Rich decides.