CA Gallery Representation & Sales 2 — Questions and Answers
Question 1: An artist consigns 10 pieces to a gallery at a 50/50 split. The gallery sells 3 works totaling $6,000. How much does the artist receive?
- $6,000
- $3,000 (Correct answer)
- $2,000
- $1,500
Correct answer: $3,000
A 50/50 consignment split means the artist receives half of total sales, so $6,000 ÷ 2 = $3,000.
Question 2: Which document specifically lists every artwork left with a gallery, including title, medium, dimensions, and retail price?
- Exhibition contract
- Consignment agreement
- Inventory receipt / consignment list (Correct answer)
- Bill of sale
Correct answer: Inventory receipt / consignment list
A consignment list (or inventory receipt) itemizes each individual work left with the gallery along with its details and retail price.
Question 3: A gallery wants to change an artist's retail prices without consent. Under standard consignment law in most U.S. states, this is:
- Acceptable if sales volume increases
- Permitted only for works under $500
- A breach of the consignment agreement (Correct answer)
- Required when the market shifts
Correct answer: A breach of the consignment agreement
Most consignment agreements and state consignment laws require mutual consent before retail prices can be altered.
Question 4: What is the primary purpose of a 'reserve price' set by an artist when working with an auction house?
- To cap the maximum bid allowed
- To guarantee the work will sell
- To set the minimum price below which the work will not be sold (Correct answer)
- To cover the auction house's commission
Correct answer: To set the minimum price below which the work will not be sold
A reserve price is the confidential minimum a seller will accept; the work passes (is withdrawn) if bidding does not reach it.
Question 5: Which of the following best describes a 'vanity gallery'?
- A gallery that only represents famous artists
- A gallery that charges artists a fee to exhibit rather than earning commission on sales (Correct answer)
- A gallery focused exclusively on self-portrait art
- A gallery that curates shows based on social media follower count
Correct answer: A gallery that charges artists a fee to exhibit rather than earning commission on sales
Vanity galleries (also called rental galleries) charge artists upfront fees to show work, unlike commission-based commercial galleries.
Question 6: An artist's work is damaged while on consignment at a gallery. Under most U.S. state consignment statutes, who bears financial responsibility?
- The artist, because they own the work
- The gallery, because it holds the work as a trustee (Correct answer)
- The shipper, regardless of circumstances
- Shared equally between artist and gallery
Correct answer: The gallery, because it holds the work as a trustee
Most state consignment laws impose a duty of care on galleries holding consigned artwork, making them responsible for damage while in their possession.
Question 7: A gallery offers an artist 'net pricing' instead of a percentage commission. What does net pricing mean for the artist?
- The artist sets a net price they want; the gallery adds its markup on top (Correct answer)
- The gallery deducts all expenses before paying the artist
- The artist receives the full retail price minus taxes only
- The commission rate drops to zero
Correct answer: The artist sets a net price they want; the gallery adds its markup on top
Under net pricing, the artist names a price they wish to receive and the gallery adds its own markup to determine the retail price.
CA Gallery Representation & Sales 2
An artist consigns 10 pieces to a gallery at a 50/50 split.
The gallery sells 3 works totaling $6,000.
How much does the artist receive?