Yesterday I had the pleasure of meeting with Alma Robinson, Executive Director of the California Lawyers for the Arts.
Alma established Alternative Dispute Resolution Services in 1980 and she shared a very helpful strategy for your creative enterprise, adding a mediation clause to your contracts.
In doing business consulting with artists, I find that their legal rights are often compromised because:
- Artists often do not completely understand their rights
- Artists are often reluctant to assert their rights
- Artists do not have proper written agreements to protect their rights or their business terms
- Artists often don’t have the funds to duke it out in court
And let’s face it; people will take advantage of those they perceive as weaker.
So what to do?
First of all, be professional.
Discuss your business terms clearly and then reiterate them in writing.
Do not transact business without a written contract. If someone doesn’t want to sign a contract, then that is a BIG red flag.
You can simply spell out your business terms on your invoice or sales receipt. It’s not complicated. For example:
- Who owns the copyright? You do, unless you are transferring or licensing it. Spell this out.
- When is the payment due?
- What exact services or products are you providing in exchange for payment?
- When will you delivering the services or products?
- Is shipping included?
- What is the sales tax amount?
- What form of payment do you accept?
- Will you accept returns or exchanges?
- What is the date of the sale?
No one wants a fight. It can be costly, stressful, and strains relationships. Most importantly, it can damage reputations.
So take a great tip from the California Lawyers for the Arts. Add a mediation clause to your written contracts.
This post does NOT constitute legal advice. That’s not my job. And you may not be from California.
The point is, just make it clear to your customers that they must agree to mediation in the case of a dispute. You will be:
- Setting a cooperative tone
- Protecting yourself
- Demonstrating your professionalism
- And saving yourself from legal fess and ligation that you may not be able to afford
Mediation
All disputes arising out of this agreement shall be submitted to mediation in accordance with the rules of Arts Arbitration and Mediation Services, a program of California Lawyers for the Arts.
Mediation/Arbitration
All disputes arising out of this agreement shall be submitted to mediation in accordance with the rules of Arts Arbitration and Mediation Services, a program of California Lawyers for the Arts.
If mediation is not successful in resolving all disputes arising out of this agreement, those unresolved disputes shall be submitted to final and binding arbitration. The arbitrator shall be selected in accordance with the rules of Arts Arbitration and Mediation Services, a program of California Lawyers for the Arts. If such services are not available, the dispute shall be submitted to arbitration in accordance with the laws of the State of California. The arbitrator’s award shall be final, and judgment may be entered upon it by any court having jurisdiction thereof.
Arbitration
All disputes arising out of this agreement shall be submitted to final and binding arbitration. The arbitrator shall be selected in accordance with the rules of Arts Arbitration and Mediation Services, a program of California Lawyers for the Arts. If such services are not available, the dispute shall be submitted to arbitration in accordance with the laws of the State of California. The arbitrator’s award shall be final, and judgment may be entered upon it by any court having jurisdiction thereof.
About Ann Rea
Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.