PRINTER'S NO. 519

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 458 Session of 1983


        INTRODUCED BY DeWEESE, CLYMER, McHALE, ZWIKL AND GANNON,
           MARCH 16, 1983

        REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, MARCH 16, 1983

                                     AN ACT

     1  Regulating the sale of visual art objects produced in multiples;
     2     and providing penalties.

     3                         TABLE OF CONTENTS
     4  Section  1.  Short title.
     5  Section  2.  Legislative findings.
     6  Section  3.  Definitions.
     7  Section  4.  Full disclosure in the sale of certain visual art
     8                 objects produced in multiples.
     9  Section  5.  Information required for post-effective date
    10                 productions.
    11  Section  6.  Information required for 1950 to effective date
    12                 productions.
    13  Section  7.  Information required for 1900 to 1949 productions.
    14  Section  8.  Information required for pre-1900 productions.
    15  Section  9.  Express warranties.
    16  Section 10.  Construction.
    17  Section 11.  Remedies and enforcement.


     1  Section 12.  Applicability.
     2  Section 13.  Effective date.
     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the Visual Art
     7  Object Sale Act.
     8  Section 2.  Legislative findings.
     9     The General Assembly finds as follows:
    10         (1)  The sale of visual art objects produced in
    11     multiples, specifically prints and photographs, affects large
    12     segments of the public. In volume and monetary value the
    13     marketing of these objects has substantially increased during
    14     the past two decades. Those affected by this development
    15     include a broad spectrum of individuals, as well as corporate
    16     and institutional purchasers. This expansion is stimulated in
    17     part by the convergence of several factors. One is an
    18     intensified interest in and appreciation of aesthetic
    19     qualities in art and cultural and artistic pursuits. Another
    20     is a felt need to acquire art.
    21         (2)  Among the main questions to be answered, and about
    22     which information is necessary, in determining the value of
    23     visual art multiples, in addition to recognized and
    24     established intrinsic aesthetic merit, are:
    25             (i)  Whether the multiple is properly attributed to
    26         the named artist.
    27             (ii)  Whether the multiple was signed by the artist
    28         after it was produced.
    29             (iii)  Whether the multiple is a reproduction of a
    30         work formerly created by the artist in a different
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     1         medium.
     2             (iv)  Whether the purported number of multiples in a
     3         "limited edition" is the actual number.
     4             (v)  Whether there are other editions of the same or
     5         virtually the same image.
     6         (3)  In order to avoid confusion on the part of the
     7     consumer, disclosure of salient factors, which legitimate
     8     merchants voluntarily provide, is essential. The disclosure
     9     will have the beneficial effects of:
    10             (i)  Alleviating confusion.
    11             (ii)  Preventing deceptive merchandising practices.
    12             (iii)  Providing a basis for further consumer self-
    13         education.
    14             (iv)  Protecting the public in areas where abuse is
    15         not immediately discernable.
    16  Section 3.  Definitions.
    17     The following words and phrases when used in this act shall
    18  have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:
    20     "Art merchant."  A person who deals in the visual art objects
    21  produced in multiples to which this act is applicable, or a
    22  person who by his occupation holds himself out as having
    23  knowledge or skill peculiar to such works, or to whom such
    24  knowledge or skill may be attributed by his employment of an
    25  agent or other intermediary who by his occupation holds himself
    26  out as having such knowledge or skill. The term includes an
    27  auctioneer who sells such works at public auction, but excludes
    28  persons, not otherwise defined or treated as art merchants
    29  herein, who are consignors or principals of auctioneers.
    30     "Artist."  The person who conceived or created the image
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     1  which is contained in or constitutes the master.
     2     "Limited edition."  Visual art multiples produced from a
     3  master, all of which are the same image and bear numbers or
     4  other markings to denote the limited production thereof to a
     5  stated maximum number of multiples or are otherwise held out as
     6  limited to a maximum number of multiples.
     7     "Master."  When used alone, is used in lieu of and means the
     8  same as such things as printing plate, stone, block, screen,
     9  photographic negative or other like material which contains an
    10  image used to produce visual art objects in multiples.
    11     "Person."  An individual, partnership, corporation,
    12  association or other entity, however organized.
    13     "Print."  In addition to meaning a multiple produced by, but
    14  not limited to, such processes as engraving, etching,
    15  woodcutting, lithography and serigraphy, also means multiples
    16  produced or developed from photographic negatives, or any
    17  combination thereof.
    18     "Proofs."  Multiples which are the same as, and which are
    19  produced from the same master as, the multiples in a limited
    20  edition, but which, whether so designated or not, are set aside
    21  from and are in addition to the limited edition to which they
    22  relate.
    23     "Signed."  Autographed by the artist's own hand, and not by
    24  mechanical means of reproduction, after the multiple was
    25  produced, whether or not the master was signed or unsigned.
    26     "Visual art multiples" or "multiples."  For the purposes of
    27  this act the terms mean prints, photographs (positive or
    28  negative) and similar art objects produced in more than one copy
    29  and sold, offered for sale or consigned in, into or from this
    30  Commonwealth for an amount in excess of $100 exclusive of any
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     1  frame. Pages or sheets taken from books and magazines and
     2  offered for sale or sold as visual art objects shall be
     3  included, but books and magazines are excluded.
     4     "Written instrument."  A written or printed agreement, bill
     5  of sale, invoice, certificate of authenticity, catalogue or any
     6  other written or printed note or memorandum describing the
     7  multiple which is to be sold, exchanged or consigned by an art
     8  merchant.
     9  Section 4.  Full disclosure in the sale of certain visual art
    10                 objects produced in multiples.
    11     (a)  Written instrument required.--An art merchant shall not
    12  sell or consign a multiple in, into or from this Commonwealth
    13  unless a written instrument is furnished to the purchaser or
    14  consignee, prior to a sale or consignment, which sets forth as
    15  to each multiple the descriptive information required by section
    16  5 for any period. With respect to auctions, this information may
    17  be furnished in catalogues or other written materials which are
    18  made readily available for consultation and purchase prior to
    19  sale, provided that a bill of sale, receipt or invoice
    20  describing the transaction is then provided which makes
    21  reference to the catalogue and lot number in which such
    22  information is supplied. Information supplied pursuant to this
    23  subsection shall be clearly, specifically and distinctly
    24  addressed to each of the items listed in section 5 unless the
    25  required data is not applicable. This section is applicable to
    26  transactions between merchants and nonmerchants and other art
    27  merchants.
    28     (b)  Descriptive information required.--An art merchant shall
    29  not cause a catalogue, prospectus, flyer or other written
    30  material or advertisement to be distributed in, into or from
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     1  this Commonwealth which solicits a direct sale, by inviting
     2  transmittal of payment for a specific multiple, unless it
     3  clearly sets forth, in close physical proximity to the place in
     4  such material where the multiple is described, the descriptive
     5  information required by section 5 for any time period. In lieu
     6  of this required information, such written material or
     7  advertising may set forth the material contained in the
     8  following quoted passage, or the passage itself, containing
     9  terms the nonobservance of which shall constitute a violation of
    10  this act, if the art merchant then supplies the required
    11  information prior to or with delivery of the multiple:
    12         "Pennsylvania law provides for disclosure in writing of
    13     certain information concerning multiples of prints and
    14     photographs when sold for more than $100 each, exclusive of
    15     any frame, prior to effecting a sale of them. This law
    16     requires disclosure of such matters as the identity of the
    17     artist, the artist's signature, the medium, whether the
    18     multiple is a reproduction, the time when the multiple was
    19     produced, use of the master which produced the multiple, and
    20     the number of multiples in a limited edition. If a
    21     prospective purchaser so requests, the information shall be
    22     transmitted to him prior to payment or the placing of an
    23     order for a multiple. If payment is made by a purchaser prior
    24     to delivery of such an art multiple, this information will be
    25     supplied at the time of or prior to delivery, in which case
    26     the purchaser is entitled to a refund if, for reasons related
    27     to matter contained in such information, he returns the
    28     multiple substantially in the condition in which received,
    29     within 30 days of receiving it. In addition, if after payment
    30     and delivery, it is ascertained that the information provided
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     1     is incorrect, the purchaser may be entitled to certain
     2     remedies."
     3  This requirement is not applicable to general written material
     4  or advertising which does not constitute an offer to effect a
     5  specific sale.
     6     (c)  Sign to be posted.--In each place of business in the
     7  Commonwealth where an art merchant is regularly engaged in sales
     8  of multiples, the art merchant shall post in a conspicuous
     9  place, a sign which in a legible format contains the information
    10  included in the following passage:
    11         "Pennsylvania law provides for the disclosure in writing
    12     of certain information concerning prints and photographs.
    13     This information is available to you in accordance with that
    14     law."
    15  Section 5.  Information required for post-effective date
    16                 productions.
    17     The following information shall be supplied, as indicated, as
    18  to each multiple produced after the effective date of this act:
    19         (1)  State the name of the artist.
    20         (2)  If the artist's name appears on the multiple, state
    21     whether the multiple was signed by the artist. If not signed
    22     by the artist then state the source of the artist's name on
    23     the multiple, such as whether the artist placed his signature
    24     on the master, whether his name was stamped or estate stamped
    25     on the multiple, or was from some other source or in some
    26     other manner placed on the multiple.
    27         (3)  (i)  Describe the medium or process and, where
    28         pertinent to photographic processes, the material used in
    29         producing the multiple such as whether the multiple was
    30         produced through the etching, engraving, lithographic,
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     1         serigraphic or a particular method and/or material used
     2         in photographic developing processes. If an established
     3         term, in accordance with the usage of the trade, cannot
     4         be employed accurately to describe the medium or process,
     5         a brief, clear description shall be made.
     6             (ii)  If the artist was deceased at the time the
     7         master was made which produced the multiple, this shall
     8         be stated.
     9             (iii)  If the multiple or the image on or in the
    10         master constitutes a mechanical, photomechanical or
    11         photographic copy or reproduction of an image previously
    12         created or produced by the artist in another medium or on
    13         or in a different master, for a purpose other than the
    14         creation of the multiple being described, this
    15         information and the respective mediums shall be stated.
    16             (iv)  If subparagraph (iii) is applicable, and the
    17         multiple is not signed, state whether the artist
    18         authorized or approved in writing the multiple or the
    19         edition of which the multiple being described is one.
    20         (4)  (i)  If the multiple is a "posthumous" multiple,
    21         that is, if the master was created during the life of the
    22         artist but the multiple was produced after the artist's
    23         death, this shall be stated.
    24             (ii)  If the multiple was made from a master which
    25         produced a prior limited edition, or from a master which
    26         constitutes or was made from a reproduction of a prior
    27         multiple or the master which produced such prior limited
    28         edition, this shall be stated.
    29         (5)  As to multiples produced after 1949, state the year
    30     or approximate year the multiple was produced. As to
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     1     multiples produced prior to 1950, state the year, approximate
     2     year or period when the master was made which produced the
     3     multiple and/or when the particular multiple being described
     4     was produced. The requirements of this paragraph shall be
     5     satisfied when the year stated is approximately accurate.
     6         (6)  (i)  State whether or not the multiple being
     7         described is offered as one of a limited edition. If it
     8         is offered as one of a limited edition, then state the
     9         number of multiples in the edition and whether and how
    10         the multiple is numbered.
    11             (ii)  Unless otherwise disclosed, the number of
    12         multiples stated pursuant to subparagraph (i) shall
    13         constitute an express warranty, as defined in section 9,
    14         that no additional numbered multiples of the same image,
    15         exclusive of proofs, have been produced.
    16             (iii)  The number of multiples stated pursuant to
    17         subparagraph (i) shall also constitute an express
    18         warranty, as defined in section 9, that no additional
    19         multiples of the same image, whether designated "proofs"
    20         other than trial proofs, numbered or otherwise, have been
    21         produced in an amount which exceeds the number in the
    22         limited edition by ten or 10%, whichever is greater.
    23             (iv)  If the number of multiples exceeds the number
    24         in the stated limited edition as provided in subparagraph
    25         (iii), then state the number of proofs other than trial
    26         proofs, or other numbered or unnumbered multiples, in the
    27         same or other editions produced from the same master or
    28         from another master as described in subparagraph (ii) and
    29         whether and how they are signed and numbered.
    30  Section 6.  Information required for 1950 to effective date
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     1                 productions.
     2     The information which shall be supplied as to each multiple
     3  produced during the period from 1950 to the effective date of
     4  this act, shall consist of the information required by section 5
     5  except for paragraphs (3)(iv), (4)(ii) and (6)(iii) and (iv).
     6  Section 7.  Information required for 1900 to 1949 productions.
     7     The information which shall be supplied as to each multiple
     8  produced during the period from 1900 through 1949 shall consist
     9  of the information required by section 5 except for paragraphs
    10  (2), (3)(ii), (iii) and (iv), (4) and (6).
    11  Section 8.  Information required for pre-1900 productions.
    12     The information which shall be supplied as to each multiple
    13  produced prior to 1900 shall consist of the information required
    14  by section 5 except for paragraphs (3)(ii), (iii) and (iv), (4)
    15  and (6).
    16  Section 9.  Express warranties.
    17     (a)  Name of artist furnished prior to 1950.--Whenever an art
    18  merchant furnishes the name of the artist pursuant to section
    19  5(1) as to multiples created prior to 1950, such merchant shall
    20  be bound only by the provisions of 13 Pa.C.S. Ch. 23 (relating
    21  to general obligation and construction of contract), but that
    22  chapter shall be deemed to include sales to art merchants.
    23     (b)  Name of artist furnished after 1949.--Whenever an art
    24  merchant furnishes the name of the artist pursuant to section
    25  5(1) for any time period after 1949, and otherwise furnishes
    26  information required by any of the paragraphs of section 5 for
    27  any time period, as to transactions including offers, sales or
    28  consignments made to nonmerchants and to another art merchant,
    29  such information shall be a part of the basis and the bargain
    30  and shall create express warranties as to the information
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     1  provided. Such warranties shall not be negated or limited
     2  because the merchant in the written instrument did not use
     3  formal words such as "warrant" or "guarantee" or because the
     4  merchant did not have a specific intention or authorization to
     5  make a warranty or because any required statement is or purports
     6  to be, or is capable of being merely the seller's opinion. The
     7  existence of a basis in fact for information warranted by virtue
     8  of this subsection shall not be a defense in an action to
     9  enforce such warranty. However, with respect to photographs
    10  produced prior to 1950, and other multiples produced prior to
    11  1900, as to information required by section 5(3), the merchant
    12  shall be deemed to have satisfied this section if a reasonable
    13  basis in fact existed for the information provided. When
    14  information is not supplied as to any paragraph of section 5
    15  because not applicable, this shall constitute the express
    16  warranty that the paragraph is not applicable.
    17     (c)  Disclaimer.--Whenever an art merchant disclaims
    18  knowledge as to a particular item about which information is
    19  required, such disclaimer shall be ineffective unless clearly,
    20  specifically and categorically stated as to such particular item
    21  and contained in the physical context of other language setting
    22  forth the required information as to a specific multiple.
    23  Section 10.  Construction.
    24     (a)  Rights in addition to other rights.--The rights,
    25  liabilities and remedies created by this act shall be construed
    26  to be in addition to and not in substitution, exclusion or
    27  displacement of other rights, liabilities and remedies provided
    28  by law, except where such construction would, as a matter of
    29  law, be unreasonable.
    30     (b)  Artist not regarded as art merchant.--Whenever an artist
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     1  sells or consigns a multiple of his own creation, the artist
     2  shall incur the obligations prescribed by this act for an art
     3  merchant, but an artist shall not otherwise be regarded as an
     4  art merchant.
     5     (c)  No liability upon compliance.--An artist or merchant who
     6  consigns a multiple to a merchant for the purpose of effecting a
     7  sale of the multiple shall have no liability to a purchaser
     8  under this act if such consignor, as to the consignee, has
     9  complied with the provisions of this act.
    10     (d)  Merchant as agent.--When a merchant has agreed to act as
    11  the agent for a consignor, who is not an art merchant, for the
    12  purpose of effecting the sale of a multiple, or when a merchant
    13  has agreed to act as the agent for an artist for the purpose of
    14  supplying the information required by this act, such merchant
    15  shall incur the liabilities prescribed by this act as to a
    16  purchaser. However, if such a merchant can establish that his
    17  liability results from incorrect information which was provided
    18  by the consignor or artist to him in writing and the merchant in
    19  good faith relied on such information, the consignor or artist
    20  shall similarly incur such liabilities as to the purchaser and
    21  such merchant.
    22  Section 11.  Remedies and enforcement.
    23     (a)  Liability of art merchant.--An art merchant, including a
    24  merchant consignee, who offers or sells a multiple in, into or
    25  from this Commonwealth without providing the information
    26  required in sections 4 and 5 for any time period, or who
    27  provides information which is mistaken, erroneous or untrue,
    28  except for harmless errors such as typographical errors, shall
    29  be liable to the purchaser to whom the multiple was sold. The
    30  merchant's liability shall consist of the consideration paid by
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     1  the purchaser with interest from the time of payment, upon the
     2  return of the multiple in substantially the same condition in
     3  which received by the purchaser. This remedy shall not bar or be
     4  deemed inconsistent with a claim for damages or with the
     5  exercise of additional remedies otherwise available to the
     6  purchaser.
     7     (b)  Disclaimer relied upon.--In any proceeding in which an
     8  art merchant relies upon a disclaimer of knowledge as to any
     9  relevant information set forth in section 5 for any time period,
    10  such disclaimer shall be effective unless the claimant is able
    11  to establish that the merchant failed to make reasonable
    12  inquiries, according to the custom and usage of the trade, to
    13  ascertain the relevant information or that such relevant
    14  information would have been ascertained as a result of such
    15  reasonable inquiries.
    16     (c)  Further liability of art merchant.--If an art merchant
    17  offers or sells a multiple and:
    18         (1)  willfully fails to provide the information set forth
    19     in sections 4 and 5 for any time period;
    20         (2)  knowingly provides false information; or
    21         (3)  the purchaser can establish that the merchant
    22     willfully and falsely disclaimed knowledge as to any relevant
    23     information, the purchaser of such a multiple may recover
    24     from the art merchant an amount equal to three times the
    25     amount recoverable under subsection (a). As to this paragraph
    26     and paragraph (1), a merchant may introduce evidence of the
    27     relevant usage and custom of the trade in any proceeding in
    28     which such treble damages are sought.
    29     (d)  Costs, fees and expenses.--In any action to enforce any
    30  provision of this act, the court may allow the prevailing
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     1  purchaser the costs of the action together with reasonable
     2  attorneys' and expert witnesses' fees. In the event, however,
     3  the court determines that an action to enforce was brought in
     4  bad faith, it may allow such expenses to the art merchant as it
     5  deems appropriate.
     6  Section 12.  Applicability.
     7     This act shall apply to the visual art objects governed by
     8  this act which are sold, offered for sale, consigned or
     9  possessed with intent to sell in, into or from this
    10  Commonwealth. With respect to such multiples it shall apply six
    11  months after the effective date of this act.
    12  Section 13.  Effective date.
    13     This act shall take effect January 1, 1984.












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