James finds a joint in Grady's glove compartment and then mentions that his father gets it for his colon cancer. Grady then smokes the joint and shares it with James. Grady then tells him that if he smokes another joint, James can start chewing on the box holding some donuts. James finds a bottle of bourbon in someone else's house, and we then see him drinking some of it as well as smoking a joint. Grady smokes another joint.
People have drinks at a party.
Grady smokes another joint. We see empty beer bottles and cans at Grady's house after a party. Hannah comments on Grady's use of drugs while writing. Grady drops a bag of pot down to a janitor. In addition, we later learn that James took a valuable collectible from their house as well.