Before the credits roll and we are serenaded by "California," Ryan, Marissa, Summer and Seth leave a sad movie in the mall. They see Luke and Julie and Marissa leaves in tears. The following day, Luke tells Ryan and Seth that he is moving to Portland with his father and he wants a chance to say goodbye to Marissa.
Meanwhile, Sandy learns that the Lighthouse's liquor license is being revoked because the commissioner is a former client of Jimmy who had a quarter of a million dollars stolen from him. As Summer and Seth decide to redesign Marissa's bedroom, Caleb comes over and tells Ryan and Marissa that he is going to propose to Julie at the pre-opening dinner that night. Luke arrives at that party drinking beer inhis truck. He enters the restaurant just as Caleb proposes and Julie accepts. The young lover scorned runs off to his truck.
Marissa and Ryan are driving around trying to find Luke when they find him ... being taken out of his wrecked truck in an amubulance. Back at the Cohen's house, Sandy asks Caleb for help with the liquor license and tells Jimmy the reason for the alcohol problem. After Luke wakes up from surgery, he bids a tearful goodbye to Marissa and Ryan. During all of this, Caleb is scheming: he offers to buy the Lighthouse, but secretly tells Marissa that he will only do so - and save her father from going broke - if she moves in with them after the marriage. Marissa is a mess, but the show ends with her, Ryan, Seth and Summer sharing a nice moment in her renovated room.
"The Proposal" File: