Cliff suspects that Dave may be trying to murder him. Arlo tries to boost employee morale by taking his staff to laughter therapy, and Sacha engages in a turf war against two children.
Dave looks back at the horrific beginnings of his new job as a production assistant for the local low-budget kid's tv show "Magic Funhouse!," hosted by a demanding manchild.
"The Magic Funhouse!" cast and crew find themselves before a judge on live court TV as they describe the events over the past six months the way they remember them.
Arlo storms off the set during a live broadcast after Dr. Pottymouth says a word that triggers a painful childhood memory. Meanwhile, Cliff plans a porn premiere party.
Mr. Chronis forces the gang to swap identities with each other in competition for a raise. Breaking character gets you Tasered and puts you out of the competition.
A shadow from Manjusha's past comes back to haunt her. Meanwhile, Cliff professes his love for another staff member, and we learn the history of "Magic Funhouse!"
