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The King sells Jim for forty dollars to the Phelps', who turn out to be Tom Sawyer's aunt and uncle. Huck finds this out when he comes across the Duke who is trying to set up another scam in the most recent town they've stopped in. The Duke tells Huck that the King sold Jim and that the King didn't even split the money with them. Then the Duke tries to send Huck on a wild goose chase just to get him out of town so that he won't tell the villagers about the scams that the conniving pair are about to pull on them. Huck, being the crafty kid that he is, knows the Duke is trying to get him out of town, so he pretends to go along with it, but then heads out to look for Jim.
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