VUE

painting. He was dismissed from the suit when the dealer who sold him the work became the defendant. e dealer was subsequently exonerated when the court determined that the painting had been falsely reported stolen by the plaintiff who knowingly sold it at auction for a profit. Spielberg already had returned the painting to the dealer by the time the lawsuit was settled. Understand the Site's Terms and Conditions of Sale before Buying. Read thoroughly and understand the terms and conditions of the online retail site, especially the terms of sale, before you click to make a purchase. Transparency and clarity are key. e terms and conditions should disclose from whom you are purchasing the work and the specific terms of sale such as the total price, commissions and payment terms. ey should answer questions such as: Are you responsible as buyer for paying any commissions, taxes on the sale, shipping, insurance or tariffs? What documentation will you receive? Who is responsible if the work is not received by you, e.g., seized by customs, lost, or damaged in transit? Is it shipped with insurance and how is a claim to be handled? Our firm represented a Virginia woman who was enamored with a Picasso plate while dining in one of Michael Stillman's restaurants in New York City and asked the waiter if she could purchase it. e waiter spoke with Stillman, a price was agreed and a check was written on the spot. It turned out that a dishwasher wrapped the plate in paper and put it in a FedEx box. No insurance was purchased and the plate arrived in several pieces. Aer much negotiation, a replacement plate was obtained and traded for the damaged one. If aer seeing the work in person, you change your mind – can you return it? Is there a return policy and/or dispute resolution policy? Typically you can't return a work of fine art without cause, but some online galleries, art fairs and retail sites may make allowances because you can't view and examine the work in person prior to buying. Others afford these rights because of applicable law. In the European Union, online art retailers may allow a buyer a "cooling-off " period to cancel a contract of sale without reason in accordance with applicable EU "distance-buying" laws. An EU buyer would notify the online seller that they no longer want the work and return it for a refund. When to Consult an Attorney – Disputes about Provenance, Art Seizures, Forgeries, Challenges to Title and Damage. e main areas of risk when buying fine artare ownership and authorship of the work. e monetary value of a work of fine art depends on its authenticity and clear title. e terms of sale should make it clear who bears the risk if the work is not authentic or the title of ownership is contested. Ideally, you want the seller to guarantee the authenticity of the work and clear title and provide a full refund if it's a forgery, there is a lien on the work or it was illegally obtained. Our firm represented a Chicago couple who had their vacation home in Florida burgled. It was crammed with antiques, including a rare Heriz rug. Several years later they saw the same rug on offer in a Sotheby's auction catalog. While Sotheby's had a bill of sale from a local Florida businessman, the bill was forged and we managed to recover the stolen rug. Generally, buying from an established auction house is less risky because they are state-regulated and their staff conducts critical due diligence on provenance and vetting of works of art prior to sale. ey typically will take a work back within five years of sale and provide a refund if the work is found to be inauthentic. Additionally, domestic auction sales are governed by the Uniform Commercial Code which affords both sellers and buyers legal rights and remedies for a breach of sale. In a private sale, the type and depth of due diligence and vetting done on a work prior to sale will vary by dealer or seller. In certain circumstances, the law provides a buyer a right of rescission within four years if a work is found to be inauthentic and other laws of contract, fraud, or negligence may apply. It is difficult to recover from a gallery or dealer if it is financially unstable, going out of business, evading contact, or lacks the liquidity to refund payment for an inauthentic work. Consider consulting an attorney to understand your rights and avenues of recourse if you cannot satisfactorily resolve a dispute regarding the purchase or sale of a fine work of art. Also, consult with an attorney for payment and insurance coverage disputes, a damaged or forged work, provenance disputes or suspected fraud. is article is not intended to be a source of legal advice for any purpose. Should you need legal advice on contracting for the sale or purchase of fine art or potential recourse for resolving an issue regarding a work of art, please contact us at Kent, Beatty & Gordon, LLP. V U E N J . C O M 154

• Cover