The next day a lovely notary public enters to have Tony officially sign the company over to Pepper. He decides to appoint Pepper as the new CEO, leaving her stunned. He decides he's had enough of being the CEO and wants to focus solely on developing Iron Man. Tony is telling Pepper that he's making more money off the company's common stock than he ever did as CEO. Back at home, Tony is on JARVIS analyzing the latest prototypes and developments for the Iron Man suit, and Pepper enters and the two argue about the future of Stark Industries. With his typical swagger, Tony still refuses to turn over the Iron Man armor to the government and walks out of the hearing. With Justin Hammer of Hammer Industries present, Tony gives a rebuttal showing that he is Iron Man and will not part with his armor (likening handing himself over as being tantamount to indentured servitude), and proceeds to hack the committees computers to show that various "attempts" at copying Tony's suit - from Iran, North Korea, and even Hammer itself - are complete failures: North Korea's is top heavy and collapses easily, Iran's crashes into the ground and explodes, while Hammer's suit turns around 180 degrees at the waist and severs its pilot's spine. Colonel Rhodes presents the investigation into the events surrounding Iron Man's creation, but Senator Stern, the committee chairman, takes his remarks out of context. The next morning, during the Senate hearing, Tony's usual brand of humor becomes the center of attention while completely ignoring the fact that the government has classified the Iron Man armor as a weapon. Tony and Happy decide to take a road trip to Washington DC in Tony's new Audi R8. After the event, Tony and Happy are leaving when they are approached by a woman who hands Tony a subpoena, summoning him to a Senate Armed Forces Committee hearing. Backstage, following his address, Tony does a quick test of his blood: the palladium he uses to power his chest arc reactor is slowly poisoning his body.
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Tony fulfills this dream by flying into the expo in full Iron Man regalia, and making a flamboyant entrance to become the new symbol of world peace. Six months after the end of the first movie, Tony Stark has used his Iron Man armor to bring about a negotiated peace treaty between the major super powers of the world, and his immense popularity with the general public is only furthered when he fulfills his father's dream by reopening the "Stark Expo" in Queens, NY, to showcase all the latest inventions that will benefit the world. Tony Stark has become a champion for world peace thanks to the Iron Man suit, and has practically solved the issue of world peace, or so he claims. Ivan then sets about recreating the Arc reactor and begins building his own weaponized suit. Ivan takes a blueprint that has his father's name on it, and also the name of Howard Stark, Tony Stark's father. Ivan thinks he should have the fame that Tony Stark is enjoying but Anton tells him to "ignore that garbage." All Anton can give Ivan is his knowledge. Ivan's father Anton is slowly dying and telling Ivan his final wishes. We are introduced to a man named Ivan Vanko. The movie opens several months after the events in the first Iron Man movie.
The synopsis below may give away important plot points.