Legal Question in Business Law in California

Not generally, but that will depend on the wording of the Power of Attorney.

Normally a Power of Attorney given for a specific purpose is limited to that purpose - unless there is language in the document that says differently.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Let's suppose that the Power of Attorney gave authority to carry out a certain business transaction, like selling a business. This can be a multi-step process, involving, for example, finding and negotiating with a buyer, notifying customers and suppliers, dismissing employees, filing dissolution papers, setting up escrows, complying with the bulk sales law, and on and on. The Power of Attorney probably would create authority for all of this, if properly worded and truly so intended, but it would not give the attorney in fact power to, for example, re-invest the proceeds of sale (except to bank them safely), because that is clearly outside the scope of a sale transaction.