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The climax may seem to be when Old Shep explodes on the stage. However, it is when Wallace lies to Rachel and tells her he was responsible for all of the acts of vandalism. He did it to protect her from the knowledge that her own little brother had done all of these things. The conflict in the story was that Wallace Wallace could not lie. When he finally does lie, to spare the feelings of a girl he likes, the conflict is resolved. That is the definition of climax-the resolution of a story's conflict.
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