Consignment relationship. Notice. Proceeds of sales held in trust. Contract requirements

(a) Whenever a consignor delivers or causes to be delivered a work of fine art to a consignee for the purpose of sale, or exhibition and sale, to the public on a commission, fee or other basis of compensation, the delivery to and acceptance thereof by the art dealer is deemed to be “on consignment” and such consignee shall thereafter with respect to the said work of fine art be deemed to be the agent of such consignor. (b) Whenever a consignor delivers or causes to be delivered a work of fine art to a consignee, such consignor shall give notice to the public by affixing to such work of fine art a sign or tag which states that such work of fine art is being sold subject to a contract of consignment, or such consignor shall post a clear and conspicuous sign in the consignee's place of business giving notice that some works of fine art are being sold subject to a contract of consignment. (c) The proceeds of the sale of a work of fine art shall be held in trust by the consignee for the benefit of the consignor. Such proceeds shall be applied first in payment of any amount due to the consignor. (d) Any provision of a contract or agreement whereby the consignor waives any of the provisions of this section or section 42-116m is void.