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Stars attend a barbecue at the Racquet Club; Frank Morgan's new business enterprise, The Trading Post, a country store in modern style, is seen. The annual Academy Awards are presented: Victor McLaglen presents the Oscar to Paul Muni, George Jessel, upstaging Bette Davis who was to have been the official presenter, to Luise Rainer; Frank Capra unveils the Irving Thalberg Memorial Award; Norma Shearer makes her first public appearance since Thalberg's death six months earlier, on the arm of Louis B. Mayer.