Quark's cousin Gaila arrives at the station with a business proposition. He offers a piece of his weapon-selling business to Quark — which would pay off all of Quark's debts within a month. But the best part is Quark will technically not be breaking the law. Instead, he will be in charge of "hospitality," showing customers a good time and allowing them to test harmless replicas of their offerings in his holosuites. Once Quark agrees, Gaila introduces him to his associate, Hagath, who takes to Quark immediately, but warns the Ferengi never to cross him. Soon, the trio is in business, and Quark is making more latinum than he ever imagined.
Odo learns of Quark's activities and arrests his nemesis. But the Bajorans have him released because Hagath and Gaila gave them arms during the Cardassian resistance. Later, Quark is present when Hagath fires Farrakk, an associate who has been performing substandard work. Quark is shocked when Gaila later reveals that Hagath had him killed, reminding Quark that he must never go against his new boss.
The pressure builds when the Regent of Palamar, a very important client, arrives to do business with Hagath, but Quark impresses Hagath with his preparations. The Regent requests weapons to kill millions, and while Gaila and Hagath immediately begin to determine what will do the job most effectively, Quark is horrified. He later confides this to Gaila, who reminds his cousin of the money to be made, not to mention the fact that Hagath will kill him if he blows this deal.
Quark, having been alienated by Sisko, Dax and everyone else because of his arms dealings, lets his conscience get the better of him and realizes that he must do something. He decides that he has to stop Hagath, even if he must sacrifice his own life in order to save millions of others.
Having delayed the transaction with the Regent, Quark brings General Nassuc, the Regent's enemy, to the station, also to buy arms — and supposedly to double their profits. In actuality, however, Quark arranges for Nassuc to "accidentally" encounter the Regent — and disappears before the fireworks begin. Gaila and Hagath flee with Nassuc in pursuit, and the Regent is killed. Quark has escaped with his life — and all of his debts paid.