Legal Question in Business Law in Pennsylvania

Re: who owns the painting?

Without further facts, I wouldn't hazard a guess. You should consult a lawyer. Perhaps there's a chapter of Volunteer Lawyers for the Arts near you. If you're near Philadelphia, you could locate further info on the local chapter from John Caldwell, of the Woodcock Washburn law firm.

When you discuss the matter with your lawyer, be sure to ask about how the Uniform Commercial Code would apply. This law governs sales of goods. Last time I studied it, years ago, it provided that someone who buys something from a "merchant who deals in goods of the kind" he bought gains good title to it, even if it wasn't paid for by the merchant. It's generally up to the original supplier to get his money from the merchant. But who knows, in your situation, there might be other facts that would lead to a different result.

Another thing to ask about would be who owns the copyright for the painting. Just because the physical embodiment of the painting is sold, it doesn't necessarily mean that the copyright was transferred. The Supreme Court dealt with the issue in Community for Creative Non-Violence v. Reid.