Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 23

Margolis gave Frey a power of attorney as follows: "I, William R. Margolis, appoint Amanda Frey to represent me in my business, Eddy Meat Packing Company, and in my name to write checks and other such instruments, and do all such matters in reference to the business as may be required to lawfully conduct this business." Two months later, Frey invited all other employees of the company to a company-paid cruise, claiming that this was good for company morale. When Margolis found out, he revoked the power of attorney.
Questions
1. Did Frey act correctly under the power of attorney?
2. Would company morale be an important factor in determining how the business should be conducted?
3. Would it have made a difference if Frey and Margolis were related?
4. Should the power of attorney have been more specific about what Frey could and could not do?