If character 1 initiates trade, then mousing over a skillbook will accurate show that character's knowledge. It tells me if I've already learned that skill or not.

If character 2 initiates barter, then I use the arrows at the top of the left pane to select character 1, then mousing over a skillbook shows inaccurate knowledge for the currently selected character. I think it's still showing knowledge for the character that initiated the trade, not the one whose name and inventory are showing.

Is this a bug, or am I misunderstanding the purpose of the arrow selections on the barter window? I assumed it was changing "which character was speaking" to the vendor. Am I wrong, and it functions only to make reaching into other inventories easier for the one character who initiated the trade?