Jim arrives at the office, and Dwight gives him a "demerit" for being late. Dwight lectures Jim about not being above the law. Dwight explains the whole hierarchy of demerits, citations, violations, verbal warnings, and written warnings, culminating in a disciplinary review for Dwight's immediate superior. "Which would be me," Jim points out, and demands a copy on his desk by the end of the day, lest Dwight receive a full desaggelation. What's that? "Oh, you don't want to know," Jim threatens darkly. Dwight looks terrified.
Phyllis comes into the office, looking even more upset and sad than usual. "I think I just got flashed," says Phyllis. Everyone gathers around, as Dwight dashes out to the parking lot to chase the perp. "Okay, I'll call the real police," Jim offers. Andy comes in offering to help. "I'll check the web," he says when no one answers. Jim says that the police have already gotten three calls, which means that, right now, Scranton's version of Elliot Stabler is already taking it personally. Phyllis tells her story: there was a guy with a map asking for directions, and when Phyllis went over to help, he had "it" out on the map. "You're a married woman!" Angela admonishes Phyllis, like this is somehow her fault. Creed wonders what the big deal is about "hanging brain." "If that's flashing, then lock me up," he THs. Capital idea!
A bit later, people are still talking about the incident when Michael comes in and senses the weird energy. He seems genuinely concerned when he hears what happened, and it's good that Bob Vance is taking Phyllis out for a walk, because Michael starts rudely snickering about Phyllis being the victim: "Did he even see Pam? Or Karen from behind?" He cracks up, and everybody -- even Andy -- just looks at Michael in disgust. Which he doesn't help matters by turning around, unzipping his fly, and poking his finger out through it and waving it around like a quintuple-sized version of his actual. Michael's like this when Toby comes in, and obnoxiously simulates...well, whatever the opposite of a Cialis moment would be. He basically accuses Toby of being the flasher, and when Toby says that he was at a parent-teacher conference, Michael says, "Prove it. Let's see your penis!" Long pause. "You know, as that was coming out of my mouth, I knew that it was wrong." That's what she said.