Raven stays in the shadows, but keeps an eye out for anything out of the ordinary.  Passive perception is 20.

Del stands near his owl, in case a chase ensues. He draws Ziia the crwth, and plays a little light music along with the foolish elves, and does a little Bardy I for Mindartis (add a d8 to a roll in the next 10 min) in case he has to do something with or to someone. Also means he's ready to cast some spells.

Quentin tsks, “Went to school for all of three weeks and he’s a high wizard now. Let’s get this over with.” Casting Mage Armor on himself Quentin approaches the indicated caravan.

Raven keeps an eye on everything, but the elves, pixies and a few mixed creatures seem mainly content to watch and see how things turn out.  Some of the musician elves stop playing to listen to Del, others cheer and jam with him.

As Mindartis and Quentin approach the caravan, Lassilar shifts uneasily, coughs and says, "Of course, you do realize that the Supreme Wizard High Lord is also the Greatest of all Fools, and if you attack him, the rest of us Fools are sort of obligated to come to his aid..."

From among the trees, there are groans, mutters of "Big mouth!" and snickers.  "Maybe we won't, though..." someone calls out from among the leaves.

Quentin sighs again and says, “We’ll only attack it attacks, runs away, or resists us. We have a long history that I’d prefer to settle today. If a display is required I suggest all of you move out of the way before it turns into a repeat of what we’ve done to two hag covens now.”

Intimidation: 5

Mindartis looks back to Lassilar, "I have no quarrel with you," he says. "If you decide you have a quarrel with me so be it."

Intimidation: 18

Elwin didn't like what he was hearing. Lowering his hand, he summoned his magical lance, then concentrated to re-form it into a glaive, opting to leave his shield on his back. He kept a close eye on the caravan as he adjusted the grip of his hands on the polearm, but also glanced around occasionally at the other fey creatures, who appeared... to not be sober.

Lassilar shrugs and says, "It's kind of a rule. But if you challenge his position as our more-or-less leader, that's fine.  And then we'll sort of be obligated to do what you order us to...if we feel like it."

The surrounding audience cheers.

“Is it one on one or can we challenge as a group?” Quentin asks 

"Eh?" Lassilar looks around to a lot of shrugs and disinterest. "I guess there's no rules about that one way or the other. So whatever."

"LEMMET!" Mindartis roars, "we challenge your leadership!"

Speaking the proper incantation, Elwin cast a spell, causing his armor of frost to form on his body. He slowly walked up behind Mindartis and Quentin, a little off to their side, to ensure he had a straight charge once the cretin appeared.

From inside the caravan, you hear a series of startled thumps, as if a chair has fallen over.  In a few seconds, the door opens, and an outraged Lemmet Naica slams the door open, and he stares at you all. "YOU!" he says with bitter hatred, then shouts to the audience, "FOOLS!  SEIZE THEM!"

Nobody moves.  Eventually, a plaintive voice from the back calls out, "Don't wanna."

With a yawn, a dark-haired, masked female elf who seems to be dressed up as a unicorn drops from a branch and walks forward. "I see I've got to take charge again," she says with disgust. "Greetings, strangers, I am Hollis, Rider of the Wind, former Herd Mother, Abdicator-in-chief and Deposed Despot In Not-Exile. Supreme Wizard High Lord Lemmet, by the Rule of Fool, you are required to accept the challenge of anyone who is a big enough fool to want to be sort of in charge. Are you ready to defend your position?"

Lemmet stares in disbelief. "You're going to let complete strangers try to take my place?  When I am working night and day for your betterment?  I've got deals in the works, builders coming to make us a distillery, connections with distributors, plans, projections! By this time next year you'll have employment, profits, self-respect!"

"You mean...work?" calls one of the elves in horror.

"Engage in trade?" demands another.

"Stay in one place all the time?" jeers a third.

"YOU'LL HAVE COINS IN YOUR POCKETS AND ALL THE BOOZE YOU CAN DRINK!" Lemmet roars.  The heckling stops, some of the crowd looking intrigued.

"You can still do all those things--or try--if you win your challenge," says Hollis.  She raises her hooves hands and shouts, "FOOLS! What form will this challenge take?"

The crowd begins whispering among themselves.  (Raven can overhear suggestions being discussed.  "Juggling!" "Juggling what?" "Eels!" "How about a beauty contest?" "Pig wrestling?" "We ate the pig last week." "Staring contest?"

But eventually, one idea takes hold, whispered from ear to ear, and repeated until it becomes a chant, louder and louder as more voices join in.

"Dance-off,

Dance-off,

Dance-off,

Dance-off,

Dance-off!!!"

Elwin looked around at the chanting crowd, eyes wide and mouth open in confused disbelief. They couldn't be serious! Closing his mouth and relaxing his grip on his glaive as the chant continued, he just muttered, "They must be taking US for fools!"

He looked to Mindartis and Quentin, silently hoping one of them could stave off the... sheer absurdity of the situation.

Raven groans, what sort of foolishness had they gotten themselves into this time...  She stays in hiding though.

Quentin thinks for a moment before saying, “But wouldn’t it be more spectacular to see Supreme Wizard High Lord Lemmet defend himself with his mastery of the arcane. I am a Wizard myself. Perhaps a wizards duel would be more.....poetic. And just imagine it, spells flying everywhere, big explosions, a show of who is truly Supreme Wizard.” As he speaks he hopes to sway the crowd more towards this.

Persuasion: 20

(EDIT....oh, dang...)

Lemmet Naica sneers.  "The words of a coward, who is afraid to show his stumbling clumsiness in public! What's the matter, Mithven the Red-Handed...two left feet?" (Persuasion 23 )  Lemmet apparently feels more confident in his ability to out-dance the party than to win a wizard's duel...

The crowd seems torn between the attractions of watching you all dance like a monkey, or seeing two wizards trying to annihilate each other for their entertainment.  Care to try again?

Quentin smiles as he says, “On the contrary. You are Wizard Supreme does that not mean you are the best Wizard here! I am challenging you at what you’re supposedly excellent at. A dance battle is boring! Any old man, child, or woman can dance. But only those of us foolish enough to tackle the mystery of the arcane can use it. Now, Lemmet are you chicken to face a true wizard?” 

Persuasion: 18