Tennessee Law on Consignment of Art

Tennessee Statutes
Title 47. Commercial Instruments And Transactions
Chapter 25. Trade Practices
Part 10. Consignment Of Art

§ 47-25-1001. Short title

This part shall be known and may be cited as the "Tennessee Consignment of Art Act."

Cite as T.C.A. § 47-25-1001

§ 47-25-1002. Definitions

As used in this part, unless the context otherwise requires:
(1)    "Art dealer" means a person engaged in the business of selling works of art, other than a person exclusively engaged in the business of selling goods at public auction;
(2)    "Artist" means the person who creates a work of art, or, if such person is deceased, such person's heir, legatee, or personal representative;
(3)    "Consignment" means that no title to, estate in, or right to possession of, the work of art, superior to that of the consignor shall vest in the consignee, notwithstanding the consignee's power or authority to transfer and convey to a third person all of the right, title, and interest of the consignor in and to such work of art;
(4)    "Co-operative" means an association or group of artists which:
(A)    Engages in the business of selling only works of art which are produced or created by such artists;
(B)    Jointly owns, operates, and markets such business; and
(C)    Accepts such works of art from its members on consignment;
(5)    "Person" means an individual, partnership, corporation, association, or other group, however organized; and
(6)    "Work of art" means an original art work which is:
(A)    A visual rendition, including a painting, drawing, sculpture, mosaic, or photograph;
(B)    A work of calligraphy;
(C)    A work of graphic art, including an etching, lithograph, offset print, or silk screen;
(D)    A craft work in materials, including clay, textile, fiber, wood, metal, plastic, or glass; or
(E)    A work in mixed media, including a collage or a work consisting of any combination of subdivisions (6)(A)-(D).

Cite as T.C.A. § 47-25-1002

§ 47-25-1003. Acts constituting consignment
Currentness
Notwithstanding any custom, practice, or usage of the trade to the contrary, whenever an artist delivers or causes to be delivered a work of art of the artist's own creation to an art dealer in this state for the purpose of exhibition or sale, or both, on a commission, fee, or other basis of compensation, the delivery to and acceptance of such work of art by the art dealer shall constitute a consignment, unless the delivery to the art dealer is pursuant to an outright sale for which the artist receives or has received full compensation for the work of art upon delivery.
Credits
1984 Pub.Acts, c. 838, § 3.
T. C. A. § 47-25-1003, TN ST § 47-25-1003
Current with laws from the 2016 Second Reg. Sess., eff. through February 1, 2016

§ 47-25-1004. Results of consignment
Currentness
A consignment of a work of art shall result in all of the following:
(1) The art dealer, after delivery of the work of art, shall constitute an agent of the artist for the purpose of sale or exhibition of the consigned work of art within the state of Tennessee;
(2) The work of art shall constitute property held in trust by the consignee for the benefit of the consignor and shall not be subject to claim by a creditor of the consignee;
(3) The consignee shall be responsible for the loss of, or damage to, the work of art; and
(4) The proceeds from the sale of the work of art shall constitute funds held in trust by the consignee for the benefit of the consignor. Such proceeds shall first be applied to pay any balance due to the consignor, unless the consignor expressly agrees otherwise in writing.
Credits
1984 Pub.Acts, c. 838, § 4.
T. C. A. § 47-25-1004, TN ST § 47-25-1004
Current with laws from the 2016 Second Reg. Sess., eff. through February 1, 2016


§ 47-25-1005. Consignments as trust property
Currentness
(a) A work of art received as a consignment shall remain trust property, notwithstanding the subsequent purchase thereof by the consignee directly or indirectly for the consignee's own account, until the price is paid in full to the consignor. If such work is thereafter resold to a bona fide purchaser before the consignor has been paid in full, the proceeds of the resale received by the consignee shall constitute funds held in trust for the benefit of the consignor to the extent necessary to pay any balance still due to the consignor, and such trusteeship shall continue until the fiduciary obligation of the consignee with respect to such transaction is discharged in full.
(b) No such trust property or trust funds shall be or become subject or subordinate to any claims, liens, or security interests of any kind or nature whatsoever, of the consignee's creditors, anything in the Uniform Commercial Code, § 47-2-326, or any other provision of the Uniform Commercial Code to the contrary notwithstanding.
Credits
1984 Pub.Acts, c. 838, § 5.
T. C. A. § 47-25-1005, TN ST § 47-25-1005
Current with laws from the 2016 Second Reg. Sess., eff. through February 1, 2016
End of Document    © 2016 Thomson Reuters. No claim to original U.S. Government Works.


§ 47-25-1006. Waiver of liability
Currentness
Any cooperative may contract with its members to waive liability for the loss of or damage to works of art consigned to such cooperative. Any other provision of a contract or an agreement whereby the consignor purports to waive any provision of this part is void.
Credits
1984 Pub.Acts, c. 838, § 6; 1985 Pub.Acts, c. 346, § 2.
T. C. A. § 47-25-1006, TN ST § 47-25-1006
Current with laws from the 2016 Second Reg. Sess., eff. through February 1, 2016

§ 47-25-1007. Obsolete