Section 117.15. Required disclosure and warranty statements.

 

(1)   Art dealer's responsibility.

(a) Before receiving any payment for the sale of a work of investment art, an art dealer shall provide the prospective buyer with a completed disclosure and warranty statement specified in sub. (2) and obtain the buyer's signature on the statement. If the art dealer sells a work of investment art by telephone or mail, a completed copy of the disclosure and warranty statement shall be in the prospective buyer's possession before the art dealer requests payment.

(b) Each disclosure and warranty statement required under this section shall be completely and accurately filled out, unless the art dealer affirms in writing on the statement that a particular item of information is unknown to the dealer and cannot be determined from generally accepted trade literature or the general consensus of expert members of the art trade.

(c) Each disclosure and warranty statement shall be printed in no less than 10-point type.

(2)   Disclosure and warranty forms. Each art dealer selling investment art shall use the following disclosure and warranty form:

"INVESTMENT ART DISCLOSURE AND
WARRANTY STATEMENT FULL WARRANTY
The state of Wisconsin requires this form for the sale of all works of multiple art priced over $800 (not including the bona fide retail value of framing and mounting). These sales are regulated by the Department of Agriculture, Trade and Consumer Protection, P.O. Box 8911, Madison, Wisconsin 53708. Chapter ATCP 117 , Wis. Adm. Code, creates certain rights in the buyer if an art dealer misrepresents such a work or fails properly to complete and provide you with this form. Section 100.20 , Wis. Stats., lists specific penalties and remedies for noncompliance.

This warranty gives you specific legal rights, and you may also have other rights which vary from state to state.

YOU OR YOUR REPRESENTATIVE ARE ENTITLED TO INSPECT THIS WORK OF ART WITHOUT ITS FRAME OR OTHER PROTECTIVE COVERING, PRIOR TO ANY PAYMENT, FOR A FEE NOT TO EXCEED $25. IF THIS RIGHT IS NOT OFFERED TO YOU PRIOR TO PAYMENT OF THE PURCHASE PRICE, YOU MAY CANCEL THIS TRANSACTION WITHIN 15 DAYS OF THE TIME YOU RECEIVE THE WORK OF ART.

All information on this form must be accurate. The art dealer may indicate on the form that a particular item is unknown, but only if it cannot be determined from generally accepted trade literature or from the general consensus of expert members of the art trade and is unknown to the dealer.

___________________(Art Dealer) warrants the accuracy of the following information about the work of art named below. As long as buyer owns this work of art, if any statement on this form is incorrect the art dealer agrees to return to buyer the full purchase price within 15 days of notification and to bear the cost of exchange and other costs buyer incurred to determine the incorrectness of the statement. Other legal remedies may also be available under Wisconsin law.

1. Name, title or description of work of art: _____________
________________________________________________.__

2. Artist _________________________________________.

3. This work displays the artist's original hand signature:
Yes _____ No _____

4. This is an original work of multiple art. The work's master was either created by the artist alone or by the artist and by others acting under the artist's supervision and direction, the work's master was created for the purpose of producing this work, the work was produced by or under the supervision and direction of the artist, and the work was approved by the artist after its completion. Yes _____ No _____ (If yes check one of the following:) The work's master was created:

(a) By the artist alone. _____

(b) By the artist and others, acting under the artist's supervision and direction. _____

5. Photomechanical reproduction was used to produce part or all of this work. Yes _____ No _____ (If yes, complete the following:) That part of the work which was reproduced photomechanically was first created in the medium of __________________.

6. (a) This work was produced in ______ (year) at _________________ (location). It was published and produced by _________________. It has the following image dimensions: ______________ and the following markings: _____________ (edition number or other identifier).

(b) (If a print, complete the following:) The work was printed on _________________(manufacturer) paper using the process known as ____________________(specify process, such as "lithography","serigraphy", "etching", "photomechanical reproduction", etc.).

(c) (If a sculpture, complete the following:) The work is made of: _______________________________________________. .

7. The prior owners or custodians of this work were:
________________________________________________________________________________________________________________________________________________________.

8. This work is part of a limited edition. The total number of originals or copies that will be designated as part of any limited edition of this work has been established, in a manner that binds all further production, by a person who can control production of the limited edition. Yes _____ No _____ (If yes, complete the following:)

(a) The total number of works within this limited edition is ________. This edition consists of every original and copy of this work identified as being part of any limited edition, including any original or copy:

i. Produced on paper of a type different from the work.

ii. Exhibiting minor variations in size, color or image.

iii. Designated as a proof, artist's copy, sample or part of a numbered or unnumbered series.

iv. Containing the image of the work.

v. Consisting of a portion of the image represented by the work.

(b) The following is a complete itemization of all works contained in this limited edition:
____________________________________________________________________________________________________________________________________________________________________________________________________________

(c) The master that produced this work was effaced or destroyed. Yes _____ No _____

Name of art dealer: _________________________________

Address: _________________________________________

Signed: __________________________________________
  (Art dealer's authorized representative)

Date: _____________________

Signed: __________________________________________
  (Buyer)

Date: _____________________

Disclaimers:

(a) Buyer understands that he or she is entitled to inspect this work of art, but chooses to waive this right. This is a disclaimer—buyer is not required to sign here.

Signed: _________________________________________
  (Buyer)

Date: _____________________

(b) Buyer understands he or she is entitled to the disclosures in this statement, but chooses to waive this right and buy this work on an "as is" basis. This is a disclaimer—buyer is not required to sign here.

Signed: __________________________________________
  (Buyer)

Date: _______________________"

(3)   Buyer's right to inspect. Any person interested in buying a work of investment art may inspect the work, without framing or other protective covering, before buying. If the art dealer does not permit such an inspection, the buyer may cancel the purchase up to 15 days after receiving the work. If a potential buyer requests to inspect a work of investment art being sold by mail or telephone, the art dealer may deliver the work to within 60 miles of the potential buyer's residence. The art dealer may charge up to $25 for preparing and delivering a work for inspection.

(4)   Disclaimers.

(a) A buyer may waive the right to inspect under sub. (3) by signing a disclaimer on the disclosure and warranty statement.

(b) An art dealer is not required to complete the disclosure and warranty statement fully if all the following occur:

1. The buyer signs the disclosure and warranty statement's disclaimer before the art dealer receives any purchase money.

2. The disclosure and warranty statement identifies the art dealer, the name of the artist, the work's identifying numbers or other markings, if any, and the work's title.

3. The disclosure and warranty statement is not replaced by any substitute warranty, certificate of authority or other representation concerning the authenticity or other attributes of the investment art.

(c) An art dealer is not required to include the disclaimers on disclosure and warranty statements.

History: Cr. Register, August, 1990, No. 416 , eff. 9-1-90.