Nick becomes anxious when Julia refuses to put a "label" on their relationship. After some miscommunication fueled by Jess, they eventually agree to be exclusive.
In one of the show's most iconic subplots, Schmidt is horrified to discover why his shower towel is always damp: Nick has been using it for years. Nick’s defense is simply that "a towel cleans you," so it shouldn't matter.
Winston tries to rekindle a relationship with a former hookup, Shelby, but realizes he has lost his "game" and relies too much on his past as a basketball player. Key Guest Stars New Girl recap: 'Jess and Julia' - Entertainment Weekly