While driving to Totleigh, Bertie remains optimistic and also sees his friend Bingo Little, who loves the formidable Honoria Glossop ("Travel Hopefully"). Honoria also appears. She and Bertie were once engaged, and she still has feelings for Bertie, though Bertie is too polite to tell her he is glad the engagement ended ("That Was Nearly Us"). Bingo overhears this and is annoyed with Bertie. Bertie introduces himself, accidentally using his real name, to forthright American businessman Cyrus Budge III Jr., a guest at Totleigh who wants to court Madeline. Stiffy loves Stinker Pinker (played by himself), but they need Sir Watkyn's approval to marry. Stiffy had an engagement announced between her and Bertie so Bertie would have to come. She wants Bertie to help her and Stinker ("Love's Maze"). To make Bertie stay and help, she points out that Gussie will be in trouble when Sir Watkyn reads the engagement announcement in "The Times". Since Cyrus knows Bertie's name, Bertie makes sure Gussie uses his own name when greeting Cyrus, and they all reintroduce themselves ("The Hallo Song"). Cyrus realizes he is Gussie's rival for Madeline's affections and intimidates Gussie. Madeline inadvertently reveals to her father that Bertie is not Gussie, so Bertie pretends he is Bingo Little instead. Honoria and Bingo arrive at the house, and Bertie introduces Bingo as Gussie Fink-Nottle. Sir Watkyn and Cyrus are left confused about who is who.