Falstaff and his company wait for the travelers so they can rob them. They tie them up and rob them but Prince Henry and Poins dress in disguise and Falstaff and his friends run away. Hal and Poins are left with the money and Hal is left with something good on Falstaff.
Then, in scene three, we see a little from the rebels. Hotspur gets a letter from someone who will not join his alliance against the king. This, of course, brings out Hotspur's signature temper. Lady Percy then suspects that something is going on but Hotspur won't tell her about his plans for war. He only tells her that she will know the next day.
Finally, in scene four, we return to Prince Henry, Falstaff, and their company. Falstaff is lying and exagerating about the robbery. Falstaff saysthat there were a hundred men and he killed at least eleven, he even goes as far as to tell Hal and Poins that they are cowards for running away. Hal lets him exagerate his story more and more for awhile. Finally, Hal tells Falstaff that it was he and Poins who were the two robbers. Hal then accuses Falstaff of being a coward. After this Hal and Falstaff do a pretend dialogue between Hal and his father. This, however, is interrupted by a visit from the sheriff inquiring about the robbery. Hal tells him that Falstaff is not there but if he is guilty Hal will send him to him when he returns.