Mrs. Steinmetz takes a liking to the young lawyer due to his youthful looks and good manners, in contrast to Hawk's henchmen. It is during her chatting with him that she explains the backstories of Herbie and Old No. 22, which Herbie found on a vacant lot whose owners were using it as a chicken house. She also explains that Tennessee has gone to Tibet to visit his ailing philosophy teacher, while Herbie's former owner, Jim Douglas, has gone to Europe racing foreign cars. On first meeting Willoughby, Nicole punches him in the face upon learning that he works for Hawk, but then tries to make up to him by offering him a ride in Herbie. Herbie goes berserk after Willoughby insults him twice, eventually taking the two to a car version of a joust tournament, which Herbie wins over a character named "The Red Knight" (strongly resembling retired racer Peter Thorndyke from the previous film), earning Willoughby a whopping $3.00 (equal to $ today). The two then go to lunch, but Nicole tells Willboughy an uninterrupted monologue on all the horrible things Hawk has done, including building a parking garage on the very same lot where Joe DiMaggio and his brothers learned to play baseball. Willoughby is upset about this and accidentally tells her that Hawk is his uncle, which enrages Nicole. She hits him with a broiled lobster in response, sending him splashing into the waters of Fisherman's Wharf below.