The gang decide to go up to Redstone Gulch to see if the legend that Charles L. Galloway, a student of Mr. Hodges, really did go up there after being given an extremely hard economics exam. Lafe, an Australian short-haired "dude" (and, according to Lola, a great kisser), claims he's a good hiker, so he takes them up to the Gulch, but gets lost. While Lola goes to find Lafe after he tries chasing ducks, the gang continue to search for the Gulch until they find a shack where he died. They find Charles Galloway's dog tag and decide to leave. Logan, however, wants to prove that Galloway really was at Redstone Gulch, so he steals the tag and puts it in Zoey's backpack. Unfortunately, this angers the ghost of Galloway, who creates an electrical storm.