Section § 1738.5

Explanation

If an artist brings their artwork to an art dealer in California to be sold or displayed and is supposed to get paid for that, it counts as a consignment. This means the artist still owns the artwork until it's sold, unless the dealer pays the artist in full at the time of delivery.

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.

Section § 1738.6

Explanation

This law explains what happens when a piece of fine art is given to an art dealer to sell or show. Firstly, the dealer acts as the artist's agent in California for selling or displaying the art. Secondly, the art remains the artist's property and is protected from the dealer's creditors. Thirdly, the dealer is responsible if the art gets lost or damaged. Lastly, any money from selling the art belongs to the artist and must be used to pay them first unless they agree in writing to do otherwise.

A consignment of a work of fine art shall result in all of the following:
(a)CA Civil Law Code § 1738.6(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)CA Civil Law Code § 1738.6(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)CA Civil Law Code § 1738.6(c) The consignee shall be responsible for the loss of, or damage to, the work of fine art.
(d)CA Civil Law Code § 1738.6(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.

Section § 1738.7

Explanation

If a piece of fine art is given to someone to sell on behalf of the owner, it stays the owner's property until they receive full payment, even if the person selling it buys it for themselves. If that person resells the art to someone else before paying the owner fully, they must keep the sale money safe and use it to pay the owner what they are owed until all debts are settled.

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.

Section § 1738.8

Explanation

This law states that if a consignor, or someone who hands over goods for sale, gives up their rights under this title through any contract or agreement, that waiver is not legally valid.

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

Section § 1738.9

Explanation

This law section explains that any written contracts made before this law came into effect are not automatically subject to it. However, if both parties agree in writing after the fact, or if the contract is extended or renewed after this law kicks in, then it will apply. Additionally, if there's a conflict between this law and the Commercial Code on the same issue, this law takes priority.

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.