The movies begins with Billy Madison (Adam Sandler) being an idiot in the pool.
He then runs to the front door to get his magazines.
Billy then goes inside and finds out that his father, Brian Madison (Darren McGavin) is having a meeting about retirement.
Brian is trying to find a person to run Madison Hotels. Brian says that he will give the ownership to Eric Gordon (Bradley Whitford) because Billy is not responsible.
Brian admits he payed Billy's teachers to pass him so he could graduate.
Billy is mad so he says he will redo grades 1 through 12 in 24 weeks. 2 weeks for each grade.
Brian accepts Billy's offer, but Eric is offended by this.