In the Dunder Mifflin offices in New York, Jan's trying to deal with her hair now that it's been blown out to Tuesday by the open-top car ride. Meanwhile, Michael's making lawyer jokes to Jan's attorney. Ryan shows up with the other Dunder Mifflin suits and asks to speak to Michael privately. When he does, he asks if he and Michael can be "off the record, as friends." Okay, so Ryan may be a dick, but he's not dumb. Not entirely dumb. He says that Jan's lawsuit has put the company in a "very tough position," and he just hopes Michael won't say anything too damaging. Michael promises he would "do anything" for the company. His loyalties sufficiently divided, Michael already starts looking around for an escape hatch.
Back in Scranton, we see Jim and Darryl playing a game of ping pong in the warehouse. Darryl slams home a shot and calls "game, son!" Pam interviews that the warehouse got a ping pong table last week, and Jim comes down to play Darryl a lot, and sometimes she brings him juice. "...My boyfriend's twelve," Pam realizes. Back to the game, we realize that Jim is one of those players who can knock a ping pong ball back across the table pretty well, but Darryl is one of those players who can also smash it home to win a point, and that is the universal dividing line between all table tennis players. Darryl wins another game and does a little dance in celebration, but that is nothing compared to the shit Kelly starts talking to Pam, of the "my boyfriend just beat your boyfriend" variety: "What has two skinny chicken legs and sucks at ping pong?" Pam is clearly rattled. Kelly interviews about the fine distinction between talking trash (hypothetical, like "Your mama's so fat, she could eat the internet") and talking smack (immediate and verifiable, like "You're ugly and I know it for a fact, because I've got the evidence right there"), and says she only talks smack.
Later on, Pam quietly calls Jim into the conference room, where he sees that she has fashioned the table to look like a ping pong table. She tells him he has to practice and get really good and beat Darryl. "Oh, I can't beat Darryl," says Jim, matter-of-factly. Pam begs him, though, if only so she can shut Kelly up. We're then treated to a montage of Kelly smack-talk, which is far and away my favorite part of this whole depressing episode: "Your boyfriend is so weak, he needs steroids just to watch baseball"; "Jim couldn't hit a ping pong ball if it was the size of the moon"; "Were Jim's parents first cousins who were also bad a ping pong?" Marry me, Mindy Kaling! Anyway, Jim agrees to get better at ping pong in order to defend his lady's honor and sends Pam away to recruit opponents.