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California Statute Violates The Dormant Commerce Clause.

August 3, 2015 by

Dormant Commerce Clause The issue revolves around the dormant Commerce Clause, which is a limitation upon the power of the States to prohibit discrimination against interstate commerce. The statute involved is California’s Resale Royalty Act [Civil Code section 986(a)] which requires the seller of fine art to pay the artist a five percent royalty if the seller resides in California or the sale takes place in California. Plaintiffs are artists who claim auction houses and retailers violated the Act by failing to pay them royalties on sales of their fine art. The Ninth Circuit, sitting en banc, held the Act violates the dormant Commerce Clause insofar as it regulates sales outside California, but that the offending provision is severable from the remainder of the statute. (Sam Francis Found. v. Christies, Inc. (Ninth Cir.; May 5, 2015) 784 F.3d 1320.)

Filed Under: Appellate Law News, Constitutional Law News, Legal News, Ninth Circuit Court of Appeal Law News Tagged With: 784 F.3d 1320, Civ.Code § 986(a), Civil Code section 986(a)

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Recent News

How to Prepare Your Business for a Merger or Acquisition

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With the 50,000 merger and acquisition (M&A) deals that happened globally in 2024, it is evident that businesses are constantly looking for ways to grow and expand. M&A deals can provide a quick and effective way for companies to enter new markets, acquire new … Read More...

What Is Commercial Litigation and How Does It Affect Your Business?

May 23, 2025 By Mark Mellor

Every business, regardless of its size or industry, faces unique challenges. Among these, legal disputes can often be the most daunting and disruptive. Commercial litigation, a specialized area of law, serves as a framework for resolving disputes arising from business … Read More...

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Real estate transactions are some of the most significant financial decisions you’ll make in your lifetime. Unfortunately, the complexity of these deals creates opportunities for fraud. Whether you’re a buyer, seller, or investor, knowing how to protect yourself and recognize … Read More...

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The Mellor Law Firm, APLC
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