The Law (in Plain English) for Galleries: A Guide for Selling Arts and Crafts

by Leonard D. DuBoff, Christopher Perea

Overview

An Essential Reference for Sellers of Arts and Crafts

In The Law (in Plain English)® for Galleries, Third Edition, Leonard DuBoff and Christopher Perea walk readers through the legal intricacies of selling arts and crafts. This helpful guide provides clear explanations and examples of real cases to furnish readers with a strong understanding of their obligations and vulnerabilities. Updated to reflect recent changes in the market and technology, this new edition is the go-to guide for all aspects of running a gallery. Chapters cover a wide range of topics, including:

• Organizing a business
• Franchising
• Working with employees and contractors
• Selling pieces
• Contracts
• Artists’ and galleries’ rights
• Catalogs and online sales
• Copyright and trademark
• Customer relations
• Product liability
• Filing taxes
• Estate planning

Gallerists, artists, craftspeople, and anyone else interested in the buying and selling of arts and crafts must have this book in their libraries.

Product Details

ISBN-13:	9781621536789
Publisher:	Allworth
Publication date:	06/16/2020
Series:	In Plain English
Edition description:	Critical edition
Pages:	336
Product dimensions:	6.00(w) x 8.90(h) x 1.00(d)
Age Range:	3 Months to 18 Years

About the Author

Leonard D. DuBoff is the founder of the DuBoff Law Group, PC. He graduated magna cum laude from Hofstra University with a degree in engineering and summa cum laude from Brooklyn Law School, where he was the research editor of the Brooklyn Law Review. He was a professor of law for almost a quarter of a century, teaching first at Stanford Law School and then at Lewis & Clark Law School in Portland, Oregon. He lives in Portland, Oregon.

Christopher Perea graduated from Cornell University, where he majored in English literature and history. While attending Willamette Law School, he worked in both the Deschutes County General Counsel’s office and the Marion County District Attorney’s office. Chris has assisted his father, a prominent labor arbitrator, with employment arbitrations for a significant amount of time. He lives in Portland, Oregon.

Table of Contents

Acknowledgments xiii

Introduction xv

Chapter 1 Organizing Your Business 1

Sole Proprietorships 2

Partnerships and Joint Ventures 3

Limited Partnerships 5

Cooperative Galleries and Shops 7

Corporations 9

S Corporations 13

Limited Liability Companies and Limited Liability Partnerships 13

Hybrids 14

Precautions for Minority Owners 15

Chapter 2 Business Organization Checklist 16

Accountant 16

Business Name 16

Business Structure 17

Chapter 3 Developing Your Business Plan 25

Executive Summary 25

History of the Business 26

Products and Services 26

The Market 26

The Competition 27

Source of Work 27

Management 28

Financial Data 28

The Business Plan Team 29

Chapter 4 Borrowing from Banks 30

Loan Proposal 31

12 Creditworthiness 31

Collateral 34

Business Outlook 36

Options for Owners of New Gallery Businesses 38

Application 40

Lender's Rules and Limitations 41

Communication when Problems Arise 43

Venture Capital 45

Chapter 5 On Setting Paid 46

Point-of-Payments 46

Installment Sales 48

Rental Sales 49

If Payment Never Comes 50

Chapter 6 Franchises 57

Creating a Franchise 57

Purchasing a Franchise 60

Chapter 7 Contracts 61

Contract Basics 61

Types of Contracts 62

Understanding Contract Principles 63

Proving an Agreement 64

When Written Contracts Are Necessary 65

Essentials to Put in Writing 66

No-Cost Written Agreements 67

Confirming Memorandum 68

Additional Terms 69

Contracting Online 70

Consumer Protection Laws 71

Mail-Order Sales 72

Chapter 8 Dealing with Artists, Craftspeople, and Other Suppliers 73

Consignment 73

Exclusivity 74

Artist's and Gallery's Rights 76

Import Issues 81

Native American Works 82

Price Antidiscrimination 83

Chapter 9 Catalog and Online Sales 85

Creating Your Own Catalog 85

Federal Trade Commission Regulations 86

Cooperative Cataloging 88

Selling through Someone Else's Catalog 88

Other Online Sales 89

Conclusion 89

Chapter 10 People Who Work for You 90

Independent Contractors 90

Employees 92

Other Considerations in Hiring 95

Hazards in the Workplace 97

Discrimination 98

Employee Handbooks 101

Zero Tolerance Policies 102

Family and Medical Leave Act 102

Termination of Relationship with Independent Contractors 103

Wrongful Termination 103

Progressive Discipline 104

Chapter 11 Copyrights 106

Copyright Law Foundation 106

Publication 107

Copyrightable Material 107

Scope of Protection 108

Ownership 109

Copyright Protection for Utilitarian Objects 112

Notice Requirement 113

Application Process 114

Delaying Registration 115

Period of Protection 116

Fair Use 117

Exemptions 118

International Protection 119

Chapter 12 Trademarks 120

Definition 121

Prohibited Trademarks 122

Protecting a Trademark 122

Federal Registration 124

Benefits of Registration 128

Supplemental Register 129

Loss of Protection 129

Infringement 130

Antidilution 130

International Protection 131

State Registration 132

Using an Attorney 133

Trademarks in the Digital Age 133

Chapter 13 Advertising 134

Government Regulation 134

Comparative Advertising 135

Publicity and Privacy 136

Unauthorized Use of Trademark 136

Geographic Locations 137

Trade Dress 137

Conclusion 139

Chapter 14 The Internet 140

Protecting Business Property 141

Protecting Consumer Information 141

Domain Names 142

Framing 144

Linking 145

Internet Advertising 145

Key Words 145

Disclosures 145

Audits 146

Liability Insurance 146

Copyright Concerns 147

Server Protection 149

Email 149

Viruses, Worms, and Traps 150

Cyberterrorism 151

Security for Online Commerce 152

Chapter 15 Customer Relations 153

Dealing with Shoplifters and Other Forms of Unacceptable Conduct 153

Proper Care of a Customers Item 154

Responsibility for Your Agents 154

Disclosures Regarding Editioned Work 155

Chapter 16 Liquor and Controlled Substance Liability 157

Chapter 17 Business Insurance 160

Basics of Insurance Law 160

Overinsuring and Underinsuring 163

Property Covered 165

When and How to Insure 166

Keeping the Cost Down 167

Chapter 18 Product Liability 168

Types of Liability 170

Federal Laws 172

If You Are Held Liable 173

Chapter 19 Renting Commercial Space 175

Terms of the Lease 175

Who Pays for What? 177

Security and Zoning 178

Security Deposits 179

Late Rent 180

Chapter 20 Taxes 181

Keeping Taxes Low 181

Income Spreading 182

Qualifying for Business Deductions 187

Chapter 21 Estate Planning 199

The Will 199

Payments of Testator's Debts 200

Disposition of Property Not Willed 201

Advantages to Having a Will 202

Taxation 203

Probate 208

Conclusion 209

Chapter 22 How to Find a Lawyer and an Accountant 210

Finding a Lawyer 211

Finding an Accountant 213

Appendix A Sample Rental Agreement and Sample Purchase Contract 217

Appendix B Sample Arbitration and Mediation Contract Clause 222

Appendix C Artist-Dealer Consignment Statutes 236

Appendix D Sample Gallery Consignment Agreement 250

Appendix E State Moral Rights Laws 259

Appendix F State Multiples Laws 260

Glossary 261

About the Authors 296

Index 297

Editorial Reviews

Leonard DuBoff and his co-author Christopher Perea are masters at demystifying the legal issues faced daily by art and craft galleries. From setting up a business to drafting and analyzing contracts, registering your work, the rights of marketing, sales, and much more, The Law (in Plain English)® for Galleries is an essential reference and should be on the desk of every art and craft gallery owner and manager.” —Les Zieba, manager, Addi Galleries, Las Vegas, San Francisco, Honolulu
 
“While gallery owners and staff are some of the most sophisticated and astute individuals in the world of the arts and crafts, we all need some legal and technical advice in order to conduct successful businesses. With colleague Christopher Perea, the widely recognized arts attorney Leonard DuBoff has produced such a book. The Law (in Plain English)® for Galleries is as essential a publication for gallery owners as any reference they might have about artists, exhibit spaces, or markets.” —Chet Orloff, director and president, Museum of the City, and manager, Pamplin International Collection of Art and History
 
“The ideal legal resource for every new and experienced art gallery and craft shop owner! From his extensive career as an expert art law attorney, Leonard DuBoff and his knowledgeable co-author, Christopher Perea, present an easy-to-understand, thorough yet concise, and extremely well-written treatment of the legal concerns art gallery and craft shop owners must know to operate with integrity and excellence. This book should be in every art gallery and craft shop owner’s library. Highly recommended!” —Carolyn Butters, president, Butters Gallery, Portland, Oregon
 
“The Law (in Plain English)® for Galleries is a must-read for artists and galleries alike. The author, Leonard D. DuBoff, has represented galleries, craft shops, as well as the creative people whose work they handle, for decades. This book guides creative people as well as gallery and craft shop owners in navigating the legal aspects of the art industry, and in avoiding common pitfalls. I found it enlightening and very easy to read, and recommend it to everyone in the art and craft business.” —Caroline Young, world-class artist
 
“I have been working with artists for over twenty-five years now and I find this book to be a valuable source of information. Navigating the art world is not easy, and this book will help artists, publishers, and those wanting to understand copyright law.” —Ruth-Ann Thorn, Crown Thorn Publishing, Inc.

From the Publisher