SECTIONS 1738.5-1738.9 - California Statutes

CIVIL CODE

SECTION 1738.5-1738.9

1738.5. Notwithstanding any custom, practice or usage of the trade
to the contrary, whenever an artist delivers or causes to be
delivered a work of fine art of the artist's own creation to an art
dealer in this state for the purpose of exhibition or sale, or both,
on a commission, fee or other basis of compensation, the delivery to
and acceptance of such work of fine art by the art dealer shall
constitute a consignment, unless the delivery to the art dealer is
pursuant to an outright sale for which the artist receives or has
received full compensation for the work of fine art upon delivery.

1738.6. A consignment of a work of fine art shall result in all of
the following:
(a) The art dealer, after delivery of the work of fine art, shall
constitute an agent of the artist for the purpose of sale or
exhibition of the consigned work of fine art within the State of
California.
(b) The work of fine art shall constitute property held in trust
by the consignee for the benefit of the consignor, and shall not be
subject to claim by a creditor of the consignee.
(c) The consignee shall be responsible for the loss of, or damage
to, the work of fine art.
(d) The proceeds from the sale of the work of fine art shall
constitute funds held in trust by the consignee for the benefit of
the consignor. Such proceeds shall first be applied to pay any
balance due to the consignor, unless the consignor expressly agrees
otherwise in writing.

1738.7. A work of fine art received as a consignment shall remain
trust property, notwithstanding the subsequent purchase thereof by
the consignee directly or indirectly for the consignee's own account
until the price is paid in full to the consignor. If such work is
thereafter resold to a bona fide purchaser before the consignor has
been paid in full, the proceeds of the resale received by the
consignee shall constitute funds held in trust for the benefit of the
consignor to the extent necessary to pay any balance still due to
the consignor and such trusteeship shall continue until the fiduciary
obligation of the consignee with respect to such transaction is
discharged in full.

1738.8. Any provision of a contract or agreement whereby the
consignor waives any provision of this title is void.

1738.9. This title shall not apply to a written contract executed
prior to the effective date of this title, unless either the parties
agree by mutual written consent that this title shall apply or such
contract is extended or renewed after the effective date of this
title.
The provisions of this title shall prevail over any conflicting or
inconsistent provisions of the Commercial Code affecting the subject
matter of this title.