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What is the significance of the auction scene in School for Scandal, Act IV, Scene V?

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The auction scene in Act IV, Scene V of "School for Scandal" is crucial as it reveals Charles' true character to Sir Oliver, who is disguised as Mr. Premium. Despite Charles' financial woes, he refuses to sell his uncle's portrait, demonstrating integrity. This act dispels Sir Oliver's doubts about Charles, contrasting him with the hypocritical Joseph. The scene underscores the theme of true worth versus superficial appearances and the folly of gossip-based judgments.

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The auction scene is significant because through it Sir Oliver comes to a better understanding of his nephew Charles' true character. All along the good-natured Charles has been in severe financial trouble, and he has sold all the objects he inherited, except for the family portrait collection. This makes him look like a self-indulgent spendthrift, and spiteful gossip heightens the sense that he is a bad character.

Disguised as the moneylender Mr. Premium, Sir Oliver purchases the family portraits Charles is selling at auction and is touched when Charles refuses to sell Sir Oliver's—at any price. This demonstration of character helps convince Sir Oliver that the gossip about Charles as money hungry is malicious, a feeling that is confirmed when Charles immediately gives a hundred of the 800 pounds he has received for the portraits to a poor relation. 

The scene helps clarify that, although he spouts the best "sentimental" (emotional, caring) talk, Joseph is a hypocrite and that Charles, though he looks worse on the outside to a gossiping public, has an inner character of true worth. Sir Oliver is shown to have the good sense to probe more deeply into his nephews' respective characters through their actions, rather to make the mistake of relying on what people say. 

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