Fashion and style are the theme for the day. The sponsor is coming, and Gracie is joined by Senor Lee and Artie Shaw to make fun of George’s suit. The Smooties sing, Argentina.
As George sets out to make a good impression for his boss, the Harvard sound man gives him grief. A representative from the sponsor enters to remind the cast of the particular nature of the sponsor. He is a stickler for immaculate appearances, and George gets teased again about his suit. Artie Shaw plays a jumping jazzy tune to transition.
Is George really as shabby as the cast make him out to be? Will the cast be able to make a good impression, and ask for pay raises? Will the sponsor make a good impression on the cast? The sponsor, a Yale man certainly has a conflict with the disgruntled Harvard sound man. In the end the cast need to make a decision that will affect them and their future employment.