I do not agree with her logic. If the auction clearly stated what you were bidding on, then there is a valid argument. I understand that modern contract law does away with Caveat Emptor (for the most part), but still what about a party's obligation to understand the terms of the contract.
Judge Judy did not try to address whether the terms were vague or misleading, etc; she just blasted the defendant as a "scam-artist" who, in the Judge's opinion, is an unfit parent. I found Judge Judy's behavior insulting to the law that she is supposed to uphold. It seems that she forsook the actual method of the law in order to create 'good TV.' I am not amused.