Bailey wakes up in a hotel room and Tracy is getting dressed. She pulls out the time-honored "early meeting" excuse but adds, "it was amazing." Bailey says "it was" with so much enthusiasm that it makes me think that Sarah was terrible in bed. He tries to make plans for later, but she brushes him off by telling him to order breakfast because she's expensing the room and leaves. He waves weakly after her. I feel like I just typed these same words recently -- maybe because the same storyline is happening to Ben on Felicity right now?
Charlie is in the office at school, and asks if the principal is ready for him. The principal's door opens and Myra walks past Charlie without looking at him, followed by her mom. Charlie tries to say hello to the mother, but she ignores him. The principal calls him in. He walks in and proposes that Myra work with her mom after school for spending money, and for more time with her mom. The principal interrupts and asks Charlie if Myra ever showed him her diary. Charlie says no. She asks if she ever discussed her feelings for him. Again, no. Charlie looks confused. Or, rather, more confused than usual. She asks where Myra slept when she spent the night at his apartment. Charlie says that she slept on the couch. The principal asks whether they had conversations about sex and birth control, or whether Myra found him attractive. Charlie says no and asks if the principal is accusing him of something. Hey, way to pick up the clues, Sherlock! The principal says that she's not, but Myra's mother is, because she thinks the relationship is inappropriate -- even suggests it's sexual -- and Myra's not denying it. Charlie asks what Myra said. I think Charlie better get himself a lawyer ASAP. Charlie denies it some more and the principal is neutral. Finally, he asks her if she believes it and the principal says ominously, "It doesn't matter what I believe."