Act I

A group of college students attend a party at the Matthewson home. Sally learns that she has passed her classes. Her boyfriend Matt Matthewson tells her he has been invited to be a junior partner in his father's firm and proposes marriage.

Matt is called away to a special meeting of the college's student honor committee. Jim Cooper (played by James Dean) was caught cheating on the final exams. Matt is the chairman of the committee and questions Jim. Jim admits cheating on the biology exam. He was in the mimeograph room and found a copy of the exam in the waste basket. He took it with him. At first, he denies sharing it with anyone else. After debate, the committee votes in favor of recommending to the dean that Jim be expelled.

On being told of the vote, Jim says there were others who cheated by using his copy of the exam. The committee agrees that, if Jim discloses all the names, they will recommend that all of the cheaters be given another chance to take the exam. Jim writes down the names.

Matt returns to the party. He tells Sally that Jim identified her as one of the cheaters. She admits it.

Act II

Matt learns from a reporter that Jim took an overdose of sleeping pills. Jim left a note that he and a lot of others were caught cheating. Matt is worried there will be a big public scandal. Sally wants to visit Jim in the hospital, and Matt tries to persuade her not to.

Sally visits Jim and gives him a toy. Jim admits that he was the source of the names. Jim is distraught over turning everyone in and having to face his parents.

Matt watches coverage of the scandal on the television. Mr. Matthewson says he cheated in college but never got caught. He says it's getting caught that matters and advises Matt to protect Sally. He urges Matt to persuade Jim to recant his inclusion of Sally on the list. Matt initially resists, but his father urges him to use whatever methods are necessary and not lecture him about what's right and wrong.

Matt meets with the dean and the school's board. The board has a vigorous debate about what action it should take. A petition is presented from students insisting that the cheaters be expelled. The board votes to expel those found to have cheated. The dean asks for the list of cheaters, and Matt turns it over.

Matt tells Sally not to worry. The cheaters are being expelled, but Matt persuaded Jim to take her name off the list. Sally protests and insists on telling the truth to the Dean.

Act III

Matt receives a letter from Sally on graduation day. He rushes to the train station to see Sally. Matt proposes that they go someplace where nobody knows about the scandal. Sally gets on the train and leaves.

Matt returns to campus to deliver his commencement address. During the address, he pauses after a few seconds. When he resumes, he apologizes and says he's ashamed. He admits he cheated by removing one of the names from the list. He says he doesn't deserve the diploma any more than those who cheated on the test. He leaves the ceremony to find Sally.