At this point, you may be thinking to yourself that there was some rule about not killing other animals. The animals thought so, too, but upon inspection find that the rules have been changed. Now it says something along the lines of not killing without cause. Semantics, really.
Napoleon gets a new name, as "Napoleon" is not majestic enough. Now it is "Our Leader, Comrade Napoleon." He’s also becoming a total snob about the amount and consistency of the foam on his cappuccinos. OK, we made that last part up.
Napoleon sells timber to neighboring farmer Frederick, refusing to take payment by check (or rather, "cheque," since this is England), demanding cash instead. Turns out the money was fake. That Frederick – such a prankster.
The animals are again attacked by the humans, who this time take dynamite and blow apart the windmill the animals were building. Did we mention they were rebuilding the windmill? Oh. Well, take our word for it, they were rebuilding the windmill. Also, some bloodiness is involved in the battle. Naturally. Boxer is injured.
The pigs celebrate their "victory" by dressing up in clothes (not allowed) and drinking alcohol (also not allowed) inside the farmhouse (you got it – not allowed).