Bo and Luke learn that a family friend, seemingly innocent little old lady Granny Annie, is operating a small-time counterfeiting ring. Boss Hogg has Granny Annie arrested and confiscates her engraving plates, and sells them to a no-nonsense mobster for $25,000. Bo and Luke set out to clear Granny Annie's name by stealing the plates back and throwing them into a lake--unaware that the mobster has found out about the theft, assumes Boss is responsible, and plans to kill him. An emotional Rosco pleads to the Bo and Luke to track down the counterfeiter before Boss suffers a brutal fate.

When she asks for a raise, Daisy loses her job at the Boar's Nest. Enos suggests to Daisy that she apply for a position as a Hazzard County deputy. Boss and acting Sheriff Grady Byrd try to rig the training program, but Daisy more than proves her worth--and is determined to demonstrate it when she takes a call to stop a pair of hardened bank robbers with nothing to lose.

When taking pictures of Uncle Jesse in front of a bank in Atlanta, Daisy inadvertently gets two bank robbers in the shot who kidnap her in exchange for the photographs. Meanwhile, Enos defies Rosco's orders, helping Bo and Luke rescue Daisy and captures the bank robbers in the process. Enos is then offered a job with the Los Angeles Police Department.

Boss manages to foreclose on the Duke farm unfair and square, no thanks to his idiot cousin, Deputy Cletus Hogg. Also, he has them arrested unfair and square on a federal charge. But Boss gets news from his physician that he supposedly has some type of terminal illness that gives him only two weeks to live. The only way to save him from the devil is to revert all of his bad deeds and perform good ones until his time comes. However, Boss Hogg's doctor receives a report that his diagnosis of Boss' condition was done in error, and Boss is healthy after all. Boss is then pleased at the correct results, but becomes devastated when he realizes that the good deeds he has already done cannot be reversed again.

A pair of jewel thieves comes through Hazzard County and while confronted by Boss and Rosco, they make a getaway in the General Lee. This makes Boss think Bo and Luke are a part of the gang. Also, when the loot is found in Rosco's patrol car by his dog Flash, Rosco is fired when Boss thinks he's in on it, too.

Cletus becomes lovestruck when Daisy uses her charms to get her cousins out of a phony traffic charge. As Cletus does everything to smother Daisy with affection, he also loses his job for bungling an arrest. However, Cletus plays the hero when Bo and Luke are jailed for passing a bad check, as part of Boss Hogg's scheme to frame the Dukes, impress a probation officer and win favor from no-nonsense Chickasaw County Sheriff "Big" Ed Little. And Flash also plays a big part in saving the day for the Dukes.

Rosco has kept a diary detailing Boss Hogg's illegal schemes carried out over the years. Two of Boss' former (and now disgruntled) associates become aware of this and swipe the diary, demanding a huge ransom or else they tip off the authorities. This leaves Bo and Luke with a moral dilemma: Defeat the crooks, as their criminal activities are more serious than Boss'; or see their longtime enemy brought to justice once and for all.

Boss hired two crooks to rob the jewelry store and Coy and Vance are very suspicious about them and go and investigate while being chased by Cletus and Enos. But when Boss sends Rosco to arrest Coy and Vance, he refuses because he wants to be good so that he will be elected "Lawman of the Year".