Just as Hotel Strange finishes preparing for the winter season, the hotel clerk, Mr. Snarf, is arrested by police from his home world- The Land of Ghosts- up above the clouds.

The hotel staff build a hot air balloon to rescue Mr. Snarf. They are soon arrested too, when they discover everything fun or interesting is illegal in the Land of Ghosts. Mr. Leclair asks his jailers for the “Rulebook of Ghosts”, which he reads the night before their trial. Mr. Leclair discovers the Rainbow Rule. None of the counsel or judge know of it because the rulebook’s pages were stuck together. The Rainbow Rule states, ” It is forbidden to forbid!” They are free to go.

Mr. Snarf and his friends leave a much happier Land of Ghosts since discovering the Rainbow Rule.

There is a recipe for caramels at the end of the book.