The young Billy has become infatuated with a "school marm", but he becomes embarrassed he has no education. He enrolls in her extended education class, only to find himself protecting other students from a gang.
The rest of the "Outlaws" are hired by a merchants group to handle a protection racket which is bleeding them dry.
It turns out that both gangs are run by a fat man known as "The Farmer", out of a local junkyard.
So Billy is up against a gang all by himself, and the rest are ambushed on the street by a gang member with a rifle.
The episode ending gunfight is somewhat more believable than the first two episodes. LOL But it turns out that bad guys in the 1980s were TERRIBLE shots. ;-)