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California Small Business Laws for Crafts

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    Visual Artists Rights Act

    • The Visual Artists Rights Act (VARA) is a federal law enacted in 1990 to protect the honor and reputation of visual artists. Under this law the creator of a visual work of art has the right to claim authorship of that work, according to "Daily Journal." It also allows the artist to prevent intentional distortion, mutilation or other modification of the work. The act also protects artists from intentional or grossly negligent damage of works. If a work has been distorted or mutilated, then VARA permits the artist to disavow authorship of that work. Additionally, VARA prevents use of an artist's name if the artist did not create the work. California has a statute similar to VARA known as the California Art Preservation Act (CAPA) which was enacted in 1979. However, most of CAPA is preempted by VARA.

    California Resale Royalties Act

    • The California Resale Royalties Act (CRRA) gives artists the right to share in profits when their works are resold. This law, enacted in 1976, only affects works sold for $1,000 or more, after subtracting the amount originally paid by the reseller, according to "Daily Journal." When a work that falls under the CRRA is sold, the seller is required to locate and pay the artist five percent of the gross sale price.

      Under the CRRA there are special exemptions for art dealers. The CRRA does not apply to the sale of a work from one art dealer to another art dealer, according to "Daily Journal." However, the work is only exempt for the first 10 years after the initial sale of the work to the art dealer from the artist. A person is considered an art dealer if he holds a sales tax permit and is actively engaged in the business of selling art works.

    The Farr Act

    • The Farr Act is a California law requiring art dealers to provide information about scarcity and authenticity of fine art prints to potential purchasers. The Farr Act, also known as the California Sale of Fine Prints Act, is intended to allow purchasers to make informed decisions regarding value of the work. The Farr Act is only applicable to sales of fine art prints or multiples for $100 or more, not including price of the frame. Even if fine art prints are only a part of the dealer's business, she is still required to comply with the Farr Act. Artists are also required to comply with disclosure agreements when selling a multiple of her own creation.

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