The ending, with Joan Blondell in bed, was filmed in her home. She was recovering from an emergency appendectomy and her doctor would not let her travel to the studio.
Terry's boss Joe Flood infers that Terry has a habit of slapping female telephone subscribers (customers) on the backside and that it was unacceptable, and he would be dismissed if he does it again. Even in the 1930s, this sort of behavior may make Terry come off more like a pervert than a romantic hero, therefore, turning off an audience and possibly jeopardizing a film's success. It was these types of characterizations that led to the creation of a motion picture code.
UPDATE: The Production Code already existed and had been adopted in 1930. However, enforcement was lax and it wasn't until mid-1934 (after this release) that universal enforcement was implemented with the creation of what in 2023 is called the Motion Picture Association (MPA). Attempts to create and enforce a cinematic Production Code date back to 1922 and the appointment of Will Hays to oversee morality in Hollywood's movies.
UPDATE: The Production Code already existed and had been adopted in 1930. However, enforcement was lax and it wasn't until mid-1934 (after this release) that universal enforcement was implemented with the creation of what in 2023 is called the Motion Picture Association (MPA). Attempts to create and enforce a cinematic Production Code date back to 1922 and the appointment of Will Hays to oversee morality in Hollywood's movies.
Pat O'Brien is called to a house of prostitution to add a longer cord to the telephone. In the process, the prostitutes solicit O'Brien and Allen Jenkins. O'Brien slaps the behind of one of the prostitutes when he leaves. She later complains to O'Brien's boss about the incident and says she is accustomed to being treated like a lady. This is laughable. At the time this motion picture was made, prostitutes were "fallen women" and entitled to no respect. If the scene was offensive then, it was because prostitution was shown, not because O'Brien slapped a woman's behind. Even under the production code, spanking a woman was perfectly acceptable.