Biff and his brother Happy, who are temporarily staying with Willy and Linda after Biff's unexpected return from the West, reminisce about their childhood together. They discuss their father's mental degeneration, which they have witnessed in the form of his constant vacillations and talking to himself. Willy walks in, angry that the two boys have never amounted to anything. In an effort to pacify their father, Biff and Happy tell Willy that Biff plans to make a business proposition the next day.
The next day, Willy goes to ask his boss, Howard, for a job in town while Biff goes to make a business proposition, but neither is successful. Willy gets angry and ends up getting fired when the boss tells him he needs a rest and can no longer represent the company. Biff waits hours to see a former employer who does not remember him and turns him down. Biff impulsively steals a fountain pen. Willy then goes to the office of his neighbor Charley, where he runs into Charley's son Bernard (now a successful lawyer); Bernard tells him that Biff originally wanted to do well in summer school, but something happened in Boston when Biff went to visit Willy that changed his mind.
Happy, Biff, and Willy meet for dinner at a restaurant, but Willy refuses to hear bad news from Biff. Happy tries to get Biff to lie to their father. Biff tries to tell him what happened as Willy gets angry and slips into a flashback of what happened in Boston the day Biff came to see him. Willy had been having an affair with a receptionist on one of his sales trips when Biff unexpectedly arrived at Willy's hotel room. A shocked Biff angrily confronted his father, calling him a liar and a fraud. From that moment, Biff's views of his father changed and set Biff adrift.
Biff leaves the restaurant in frustration, followed