The context of the following conversation is Since they felt threatened by the group of new students, Bailey used trickery to control them.:
Bailey says OK guys if you could please quiet down..
The friend responds Nah, we won't! First day of class! Let's start a riot!.
Bailey responds Very well then! Whichever student is the first to be quiet gets no homework for a month..
The friend responds Wow! You've got a deal..
Bailey responds I thought so..
The friend responds This Mr. Bailey sure knows his stuff..