He then threatens to sue Brian if he does not pass the company onto him. Brian agrees to give Billy another chance but Eric cites that Billy failed the challenge by not finishing ninth grade within two weeks. Veronica motivates him to return to school, while his grade school classmates convince Max to retract his false accusations, infuriating Eric.

Billy grows distraught and reverts to his previous carefree lifestyle. Desperate to take over Madison Hotels, he blackmails Billy's elementary school principal, Max Anderson, into lying that Billy bribed him for passing grades, with a wrestling magazine containing pictures of Max's previous career as the 'Revolting Blob', a masked wrestler who accidentally killed a man in the ring.Īngered, Brian calls off his deal with Billy and renames Eric as chairman to the company.

Billy becomes popular among the third graders and misses them as he advances through school. He finds himself as one of Veronica's students in the third grade and earns her respect by standing up for Ernie, his friend and classmate. Nevertheless, Billy successfully progresses through his first two grades. Shortly after enrolling into elementary school, Billy becomes attracted to a third grade teacher named Veronica Vaughn, who initially ignores him. The two finally compromise: Billy must complete all 12 grades of school, with two weeks for each grade, to prove he is competent enough to manage the company. When Billy begs his father to reconsider his decision, as he knows how callous and cruel Eric is, Brian reveals that he secretly bribed Billy's school teachers to give him passing grades. Brian loses confidence in his son and chooses his devious executive vice president Eric Gordon to take over Madison Hotels. One evening, Billy ruins a dinner meeting between his father and his associates by acting obnoxiously. Billy spends his days drinking with friends and creating disturbances across his father's estate. Billy Madison is the dimwitted, childish, and spoiled 27-year-old heir to Madison Hotels, a Fortune 500 chain of 650 hotels founded by his father, retiring tycoon Brian Madison.

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