The Duke and Duchess of Plaza Toro soon arrive with the beautiful Casilda. They are now dressed in style, and the Duke explains how he was applied for by the public under the Limited Liability Company Act, and how they now earn a very good living. Appalled, however, at the lack of pomp and ceremony with which they were received, he attempts to educate the two monarchs in proper royal behaviour. After a lesson in etiquette, the two Palmieri brothers are left alone with Casilda. She agrees to be an obedient wife, but warns them that she is "over head and ears in love with someone else." Seizing this opportunity, the two men introduce their wives. The three ladies and two men sing a quintet about their unprecedented predicament.