In the episode "The Puffy Shirt" (Season 5, Episode 2), Elaine accidentally takes Kramer's bicycle and, after trying to return it, gets caught up in a series of misadventures involving a Puffy Shirt and her boss, Mr. Lippman.
When Elaine finally tries to return the bike, Kramer refuses to accept it and demands compensation. Newman, who has been observing the entire ordeal, steps in and offers to mediate the dispute. Ultimately, Newman is able to "settle" the matter by convincing Kramer to accept Elaine's apology and a box of "Newman's Famous Cookies."