Jake, Fu, and Lao Shi are going to visit the palace where the Dragon Councils live. A goblin was in an elevator and tells the 3 characters to hold on to the elevator cause it goes fast, very fast. Jake reaches as he sskates on his stakeboard, but an Australian Dragon named Fred Nerk makes him trip and Andam turns into a dragon and hits the stakeboard and Kulde turns into a dragon and rescues Jake, but breaths ice and accidentally freezes Chang.
Jake had did a couple of bad things such as using shapshifting powers for personal games, revealing dragon identitys to humans, and taking a soul sucking nix to a school dance, but Fu told Councilor Kulde he shouldn't blame Jake, cause Jasmine was hot Omina, Chang, Kukulkhan, Andam, and Kulde get confused). Lao Shi told the councilors that Jake is brave, has a good heart, and even greater... FU! (shows Fu is playing a violin) What? I thought you were trying to create a mood here. The Dragon Councils show 3 tests such as the Test of Judgement in Fire, the Test of Wisdom in Battle, and the Test of Courage in Flight and they will require Jake to pass at least 2.
Jake told Fu the dragon that picked on him was Fred Nerk. Jake tricked Fred Nerk to come to the office that Jake pretended that his Fred's Mommy has came to give him some lovy clothes and the dragons start laughting at Nerk. Fu pours chocolate, nuts, and milk on Nerk. Jake puts a cherry on Nerk and leaves. Fu makes 2 dessert jokes such as they had to split and see him next Sunday. Jake get powned by Nerk after he shoots a beehive and it fell on Jake. Jake puts a rocket booster in Nerk and it exploded Nerk's pants with pain. Fred Nerk puts invisible soap and Jake rubs it on him and Jake becomes naked and invisible except hi head and arms. Jake failed the 1st test after smelling magic sneezing salt.
In a volcano, an evil and dark creature-like dragon is in gray clothes, and a servant arrives and tells the evil dragon that Jake failed the 1st test.
Jake challenges Fu (who is in a griffin costume) in a statue meuseum. Jake wonders why the Huntsman is the #4 Threat and the #1 Threat is the Dark Dragon.
Jake passed the 2nd test after he trapped the 3 brownies (elf kind) in his bare hands. Jake picked Nerk to beat him in the 3rd test. Nerk gets grabbed by a shadowy hand and gets taken in a volcano. Jake trys to find him, but the same evil dark creature-like dragon arrives who was the Dark Dragon and ambushes Jake. A bunch of foot soldiers that work for the Dark Dragon called Shade Demons corner Jake. Jake fights the demons an rescues Fred Nerk. Jake fights the Dark Dragon, but Fred Nerk arrives and stops Dark Dragon.
Jake failed the 3rd test, since Nerk beat him. Jake told the Dragon Councilors and the other dragon that the Dark Dragon is back. Nerk told Andam Jake had Nerk beat, but Jake turned back to save him. Councilor Kulde told Jake that sacrafissing his own glorry to save a dragon in danger shows good Test of Judgement in Fire, and Omina nods. Kulde gives a Jake a bonus credit that says pass.
Meanwhile back at the volcano, the Dark Dragon has failed and the same sevent who arrived revealed to be Councilor Chang!
Fred Nerk arrives back and thanks Jake for saving him.