The next part begins much like the first scene: The three children lie in the meadow. They visit with their friends, who are all hard at work at their new jobs. At first they beg for their food, but then realize they need occupations if they are going to survive. They get a job at the bakery under the tutelage of the lion, Hubert Knapsack. He gives them the job of baking a "dignified" cake for one of King Loy's official functions. They bake a cake in the form of King Loy himself, but the king dismisses the cake as inappropriate for the occasion and unbefitting his stature. When Hubert finds out, he is enraged and sues them. The children are tried in court, found guilty, and lose their jobs. When they ask how they are to eat, the king replies, "To decide that is not the function of a court of arbitration."