The annual Stars Hollow charity picnic basket lunch auction sparks controversies among couples throughout town; Jess outbids Dean for Rory's basket, causing Dean and Rory to quarrel when Rory abides by tradition and shares the lunch with Jess; Jackson refuses to bid on Sookie's basket after she leads him to believe that she doesn't want to move in together; Luke comes to Lorelai's rescue, bids on her basket, and feeds them both at the diner after Miss Patty sets Lorelai up with a trio of unsuitable bidders; Henry tires of the end runs around Mrs. Kim, and calls it quits with Lane; Rory and Jess hit it off at lunch and Jess leaves with a secret souvenir -- the bracelet that Dean gave Rory, which he picks it up and holds on to after Rory drops it; Sookie and Jackson work things out so well that he proposes and she accepts; Lorelai and Rory quarrel when Rory finds out that her mother lent a sympathetic ear to Dean's concerns about Jess; after Emily agrees with her daughter's distrust of Jess, Lorelai realizes that they're both wrong, and apologizes to her daughter.