At a reception for the new Advertising Department head, Benjamin Burton Daniel Ovington, Rosemary hopes to impress Finch with her new "Paris original" dress, but all the other women arrive at the reception wearing the same dress ("Paris Original"). Frump schemes for Biggley to catch Finch kissing LaRue in his office, but after LaRue blackmails Finch into kissing her, he realizes he's actually in love with Rosemary ("Rosemary"). After some farcical complications, Frump and Biggley walk into the office just as Finch embraces Rosemary. Ovington is forced to resign when Biggley learns that he is a graduate from Northern State (a "chipmunk"), Old Ivy's bitter rival. Biggley names Finch Vice-President in Charge of Advertising. Biggley leaves as Finch and Rosemary declare their love for each other, and Bud Frump vows revenge ("Act I Finale").