This must be a very rare episode of Happy Days as I don’t ever recall seeing the Fonz without wearing his trade mark leather jacket. The reason soon becomes clear though as he has gotten himself into some dispute or other and so decides to have a dance competition to settle it.
As with everything the Fonz does though he is just naturally brilliant at it and totally smashes it. I don’t know if Henry Winkler the actor who played Fonz had dance lessons but it seems whatever was thrown at him like any good pro he was able to handle it with ease.