Art Galleries and Restraint of Trade?

Daniel Grant has a thought provoking article on the Huffington Post about works for sale in an art gallery and potential restraint of trade.  Grant points out that some works may only be available to a select few, prices may not be listed or available, perhaps there is a waiting list for popular artist along with potential contracts such as the gallery have right of first refusal in the event the work is for sale.

The questions for appraisers is, with such potential for galleries to erect barriers to purchase artworks, how might it impact value and the ability to fine legitimate and available replacements?

Grant writes

Works on display in an art gallery may be for sale to anyone who wants to buy them, but maybe not. (A price list might not even be available.) Some art buyers may get first dibs on any and all works on display and a better deal to go with it than others not on an A-list. Some dealers require buyers to earn their way onto a waiting list for the work of particularly sought-after artists, requiring collectors to buy pieces by other artists the dealers happen to sell. Art buyers might be required to sign a contract obligating them to sell the artwork back only through the gallery where it was originally purchased or that the artist be paid a royalty when the work is resold or that the art can't be sold at all but only donated to a museum. Imagine how few automobiles would be on the road if those were the requirements for buying one.

Of course, automobiles are mass-produced and works of art are unique and relatively rare. Still, collectors of the work of highly touted artists are required to put up with a situation that in most other realms would be considered intolerable. Most, but not all: Certain restaurants, nightclubs and hotels don't operate on a first-come, first-serve basis but seek out those who are well-known or particularly attractive, turning away others who don't add some measure of allure to the place; the boards of directors of New York City co-op apartment buildings interview those seeking to purchase an apartment, rejecting prospective buyers for reasons that may be purely aesthetic and completely unrelated to the ability to afford the cost and be a respectful neighbor. With art galleries, too, the market may determine the price but not the eligibility to make a purchase.

Source: The Huffington Post

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