CA Gallery Representation & Sales 3 — Questions and Answers
Question 1: Which type of gallery agreement gives a gallery the exclusive right to sell an artist's work within a specific geographic territory?
- Non-exclusive representation contract
- Exclusive territorial representation agreement (Correct answer)
- Consignment receipt
- Studio visit letter of intent
Correct answer: Exclusive territorial representation agreement
An exclusive territorial representation agreement grants one gallery the sole right to sell the artist's work within a defined region.
Question 2: When a collector purchases artwork directly from an artist after being introduced by the artist's gallery, this is called:
- A studio sale
- A backdoor sale (Correct answer)
- A commission bypass
- A private placement
Correct answer: A backdoor sale
A 'backdoor sale' occurs when an artist sells directly to a collector the gallery introduced, cutting the gallery out of its earned commission.
Question 3: How long does U.S. copyright protection generally last for artwork created by an individual artist today?
- 28 years from publication
- Life of the artist plus 70 years (Correct answer)
- 100 years from creation
- 50 years from first sale
Correct answer: Life of the artist plus 70 years
Under current U.S. copyright law, works by individual creators are protected for the life of the author plus 70 years.
Question 4: A gallery holds an artist's consigned work for 18 months but fails to pay after sales. What legal recourse does the artist most directly have in states with consignment protection laws?
- File a trademark infringement claim
- Reclaim the works as they are protected trust property (Correct answer)
- Sue only for emotional distress
- Demand a new consignment contract
Correct answer: Reclaim the works as they are protected trust property
Most state consignment laws hold that consigned artwork and proceeds are trust property, allowing the artist to reclaim unsold works and unpaid funds.
Question 5: Which sales metric is most useful for an artist evaluating whether a gallery is performing well on their behalf?
- Number of opening-night attendees
- Sell-through rate (percentage of consigned works sold) (Correct answer)
- Social media posts about the exhibition
- Gallery square footage
Correct answer: Sell-through rate (percentage of consigned works sold)
Sell-through rate directly measures what portion of consigned work was converted to sales, reflecting the gallery's sales effectiveness.
Question 6: An artist wants to license an image of their painting for use on greeting cards. Which agreement governs this transaction?
- Consignment agreement
- Licensing agreement (Correct answer)
- Bill of sale
- Loan agreement
Correct answer: Licensing agreement
A licensing agreement grants a third party permission to reproduce or use the artwork image in a defined way, separate from selling the physical work.
Question 7: What does it mean when a gallery places a 'red dot' next to an artwork on display?
- The work is not for sale
- The work has been sold (Correct answer)
- The work is on hold pending payment
- The work is the artist's personal favorite
Correct answer: The work has been sold
A red dot placed beside a work is the traditional gallery signal that the piece has been sold.
CA Gallery Representation & Sales 3
Which type of gallery agreement gives a gallery the exclusive right to sell an artist's work within a specific geographic territory?