Which describes the content of a basic acquisition due diligence checklist?

• A. Collect information on legal ownership, provenance chain, authenticity indicators, condition and conservation history, exhibition history, previous appraisals, insurance records, shipping/transportation risk, liens/encumbrances, copyright/usage rights, and financial/ethical considerations.
• B. A checklist of preferred artists.
• C. Only the purchase price and availability.
• D. Shipping routes only.

Answer: (A)

In acquisitions, due diligence is about verifying legitimacy, ownership chain, and every factor that could affect value, transferability, risk, and ongoing rights. A basic checklist should gather information across several domains: legal ownership and provenance; authenticity indicators; condition and conservation history; exhibition history; previous appraisals; insurance records; shipping and transportation risk; liens or encumbrances; copyright or usage rights; and financial and ethical considerations. This breadth is essential because each piece informs risk and value: provenance confirms a clean transfer chain and helps rule out theft; authenticity indicators support confidence it's genuine; condition history flags restoration needs and value implications; exhibition history provides documentation of the artwork's public record and recognition; prior appraisals anchor market value; insurance records show insurability and claims; shipping risk addresses logistics and risk of damage or loss; liens and encumbrances reveal claims that could affect transfer or ownership; copyright or usage rights determine how the work can be shown, reproduced, or loaned; financial and ethical considerations cover market ethics, provenance concerns, and potential cultural heritage issues. The other options miss this comprehensive set: focusing on preferred artists does not address ownership or risk; only purchase price and availability ignore legality and condition; shipping routes alone don’t cover ownership, authenticity, or rights.