The drunken Ta spends the night at Helen's apartment ("Ballet"). In the morning, Mei Li delivers Master Wang's coat for Helen to mend and is distressed to see Ta's dinner jacket there. Mei Li jumps to conclusions and leaves horrified. Ta leaves the lonely Helen, totally oblivious to her attempts to interest him. Wang wants the bar and its "evil spirits" shut down; his sister-in-law informs him that free enterprise cannot be shut down, and the two wonder at the foibles of the younger generation ("The Other Generation"). Ta arrives home to admit that his father was right, Mei Li is the girl for him. But now, Mei Li wants nothing to do with him, and the Lis leave the Wang home. Sammy Fong and Linda decide to get married ("Sunday"), but when he goes to the Three Family Association (a benevolent association) to announce Linda as his bride, he finds Mei Li and her father there, and the elders insist that he honor his betrothal to the immigrant girl.