The Duke and Larry arrive at Jimmy's house the next morning searching frantically for Kay. The pretty girls also drop in, and Larry leads a minstrel-style song and dance ("Clap Yo' Hands") to cheer up the Duke. Kay hides in Jimmy's bedroom until all the guests leave. The revenue officer returns, and Jimmy and Kay pretend to be newlyweds ("Do, Do, Do"). The Duke, Constance and Constance's father, Judge Appleton, all show up, and Kay hides in the bedroom again. Now that Jimmy's annulment is final, the Judge plans to preside over an official marriage ceremony that afternoon. Constance hears noises from the bedroom and opens the door. Kay, now dressed as an English maid, introduces herself as Jane, wife of Shorty the butler. Kay realizes she is in love with Jimmy and resolves to prevent his marriage to Constance.
