CA Art Business & Marketing 2 — Questions and Answers
Question 1: Which contract clause protects an artist if a gallery closes or goes bankrupt while holding their work?
- Consignment with title retention (Correct answer)
- Exclusive representation clause
- Right of first refusal
- Indemnification clause
Correct answer: Consignment with title retention
A consignment agreement with title retention means the artist retains legal ownership of the work until it is sold, protecting it from creditors if the gallery fails.
Question 2: An artist wants to license an image for use on merchandise. Which royalty structure pays the artist a percentage of each unit sold?
- Flat fee license
- Royalty-based license (Correct answer)
- Buy-out license
- Creative Commons license
Correct answer: Royalty-based license
A royalty-based license pays the artist an ongoing percentage of revenue from each unit sold, unlike a flat fee or buy-out which are one-time payments.
Question 3: What is the primary purpose of an artist's statement in a portfolio or gallery submission?
- To list the prices of all artworks
- To provide a biography of the artist's childhood
- To contextualize the work and communicate the artist's intent (Correct answer)
- To certify the authenticity of each piece
Correct answer: To contextualize the work and communicate the artist's intent
An artist's statement gives viewers, curators, and collectors context for the work by articulating the themes, processes, and intentions behind it.
Question 4: Which pricing method sets artwork prices based on what similar works by comparable artists are selling for?
- Cost-plus pricing
- Competitive market pricing (Correct answer)
- Value-based pricing
- Prestige pricing
Correct answer: Competitive market pricing
Competitive market pricing benchmarks an artist's prices against comparable artists and similar works in the current marketplace.
Question 5: A gallery takes 40% of the sale price of an artwork listed at $2,000. What does the artist receive?
- $800
- $1,200 (Correct answer)
- $1,400
- $600
Correct answer: $1,200
The gallery retains 40% ($800) and the artist receives the remaining 60%, which is $1,200.
Question 6: Which social media metric best indicates audience engagement rather than simple reach?
- Follower count
- Impressions
- Engagement rate (likes, comments, shares per post) (Correct answer)
- Profile views
Correct answer: Engagement rate (likes, comments, shares per post)
Engagement rate measures active interaction with content and is a stronger indicator of an invested audience than passive reach metrics like impressions or follower count.
Question 7: When an artist registers a copyright, the registration provides which key legal advantage in an infringement lawsuit?
- Automatic triple damages in all cases
- The ability to sue in federal court and recover statutory damages and attorney's fees (Correct answer)
- Permanent ownership rights that never expire
- Protection in all countries without additional filings
Correct answer: The ability to sue in federal court and recover statutory damages and attorney's fees
U.S. copyright registration allows artists to sue in federal court and potentially recover statutory damages and attorney's fees, which are not available without registration.
CA Art Business & Marketing 2
Which contract clause protects an artist if a gallery closes or goes bankrupt while holding their work?