USA – FLORIDA Law and Practice Contributed by: Diego R. Figueroa Rodríguez, DLA Piper
ties and Legislation for additional applicability of Florida laws to consignment sales by galleries and sales by auction. 6.4 Pre-Sale Checks for Auction Houses and Galleries Florida does not impose specific due diligence obli - gations on galleries or auction houses before the sale of artworks. However, certain best practices may be followed to comply with applicable laws for the sale of goods. Title and Provenance Under Florida Statute 672.403 (1) of the Florida UCC, a purchaser of goods acquires all titles that the trans - feror had or had the power to transfer. This is based on the Anglo-American common law of property, which holds that a thief cannot convey good title to stolen goods, even to a good-faith purchaser for value (GFP). Similarly, one cannot claim title through a thief, even through the hands of a GFP. Therefore, inquiring about the artwork’s legal ownership, the right to sell and the chain of ownership is key. Authenticity Verify the artwork’s authenticity through certificates of authenticity, expert analysis and provenance records. Stolen Art Search public and private databases of stolen art and conduct lien searches. Export and Import Compliance If the artwork has been or is to be imported or export - ed, ensure compliance with relevant export and import regulations. Anti-Money Laundering See 6.6 Anti-Money Laundering Regulations and the Art Market . (Please refer to 4.3 Legal Remedies Following a Dec- laration of Inauthenticity for the express and implied warranties and consumer protection rules that apply to the sale of artworks by galleries and/or auction houses. As for additional applicability of Florida laws to consignment sales by galleries and sales by auc -
and installation procedures, payment terms, instal - ments and the kill fee (compensation for cancelling the commission before completion); and • auctions – refer to 1.1 Relevant Authorities and Legislation for considerations related to auctions in Florida. 6.2 Issues in Cross-Border Art Sales Key Considerations for International Artwork Sales Export and import controls: Cross-border art trans - actions are primarily governed by export and import regulations. While Florida does not impose state-level restrictions on the movement of artworks, these mat - ters are subject to federal oversight. For more detailed guidance, refer to the USA Practice Guide. Title and Provenance Customs authorities may request comprehensive doc - umentation to verify the artwork’s ownership history and authenticity, as a safeguard against the trafficking International sales often require specialised art ship - pers to ensure safe handling and transportation, along with appropriate insurance coverage. Tax Considerations The artwork’s jurisdictional location, customs status and ultimate destination determine any applicable tax obligations. Notably, no cross-border applicable taxes are levied at the state level in Florida. 6.3 Gallery and Auction House Liability for Fake Art Galleries and auction houses selling counterfeit or plagiarised artworks face severe legal and financial repercussions. These consequences include civil law - suits for fraud, negligence, misrepresentation, breach of warranty, breach of contract, unjust enrichment, copyright infringement and even potential criminal liability for fraud. As a result, they may be compelled to refund the purchase price plus interest and costs, pay damages and endure reputational damage. of stolen or forged pieces. Shipping and Insurance Please refer to 4.3 Legal Remedies Following a Dec- laration of Inauthenticity for the liabilities of galleries and/or auction houses and to 1.1 Relevant Authori-
238 CHAMBERS.COM
Powered by FlippingBook