| Article 02. ARTISTS AND WORKS OF ART
Sec. 45.65.200. Artists and art dealer relationships. (a) When an artist delivers or causes to
be delivered a work of art of the artist's own creation to an art dealer
for the purpose of sale, or exhibition and sale, on a commission, fee,
or other basis of compensation, the acceptance of the work of art by the
art dealer is a consignment, and
(1) the art dealer is, with respect to
the work of art, the agent of the artist;
(2) the work of art is trust property
in the hands of the art dealer for the benefit of the artist;
(3) proceeds from the sale of the work
of art are trust funds in the hands of the art dealer for the benefit
of the artist;
(4) the art dealer shall return an unsold
work of art on demand of the artist;
(5) the art dealer is strictly liable
for loss or damage to a work of art while the work of art is in the
possession of the art dealer; the value of a lost or damaged work of
art is the value established by written agreement between the artist
and art dealer before the loss or damage of the work of art; if no written
agreement establishing the value of the work of art exists, the value
is the fair market value of the work of art less the art dealer's commission
or fee; and
(6) the dealer shall transmit the proceeds
to the artist within 30 days of receipt by the dealer; if the sale is
on installment, the money from each installment shall first be applied
to pay any balance due the artist on the sale, unless the artist expressly
agrees in writing that the proceeds on each installment are to be paid
according to a percentage established by the consignment agreement.
(b) A work of art initially received as
a consignment remains trust property notwithstanding the subsequent purchase
of the artwork by the art dealer directly or indirectly for the art dealer's
own account until the consignment price due to the artist is paid in full.
The trusteeship continues until the fiduciary obligation of the art dealer
with respect to the transaction is discharged in full. |
