The idea was apparently to teach the students a lesson about the civil war.
Students, including this one, say she separated the black and mixed-race students from the white students and, in effect, put them up for sale.
"It's uneasy because I'm an African American. I can imagine being in school and basically made fun of in front of everybody," said Jacole Graves, a concerned parent.
The principal sent home a letter saying, while the lesson was inappropriate, the teacher's actions were well-intended.
The school district will only say "personnel action" is being taken with the teacher.
"This was wrong," said Elizabeth Mather, a district spokeswoman. "It wasn't the right thing to do in the classroom environment."