After finding out that Johnny died Dally went and robbed a grocery store. While Dally was running from the cops he pulled out an unloaded gun that he uses for bluffing. The cops of course don't know this and shoot at Dally, which kills him on the spot. After everything Ponyboy has to go to a hospital and get rested.
Ponyboy had to stay in his bed for a week after being at the hospital. To pass the time he looked through an old year book and found Bob. Some of his school friends drop by and he has a talk with Randy.
Ponyboy goes to his court and the judge says he is acquitted and that the case was closed. Ponyboy is also having trouble with his school work, especially English. His teacher told him that if he did a good job on his project he would pass him. Pony spent a lot of time thinking about what he was going to write, until he finally decides on the writing The Outsiders.