Don once again proves that he is the smartest man in the room when he faces off against a competitor for a big contract with Honda. The Japanese motorcycle manufacturer makes the terms clear: Each agency has a budget of $3000 and may not turn in any finished work. Don knows they can’t win, but he’s reading The Chrysanthemum and the Sword, America’s post-WWII guide to Japanese culture. He rents a studio and pretends to shoot a commercial. While his rivals at Cutler Gleason and Chaough see equipment being dragged into a studio and hear motorcycle sounds, all Don really does is pay Peggy to ride in circles on the Japanese bike for hours. The trick works, and when Cutler Gleason and Chaough show their own commercial, violating Honda’s rules, Don returns the $3000 budget to the Japanese execs. This not only wins him their respect, but also first crack at their upcoming automobile accounts. Don’s rivals never saw the roundhouse kick coming.