Thoroughly disappointed with his experiences, Viggo sets up a company with his brother Victor. Together they re-enter the wedding cake and table decoration business. The cakes are pre ordered up to 12 months out and things are "going great" according to Viggo when interviewed for the Wonderful Weddings magazine. But Victor cuts costs with the decorations and starts ordering lower quality items while retaining the marketing photos of branded items. For example, in the themed wedding packages, couples can choose the Chanel theme. Authentic Chanel champagne flutes are included along with Chanel napkins etc. Victor charges customers the full price for the Chanel themed weddings and puts the extra profit (about $2000) per wedding into his own bank account. This goes on for several years and Victor has pocketed about $100,000. Unfortunately, Whitney, a recent bride, is savvy and realises the glasses and everything else is fake Chanel. She sends a letter to the company asserting they have breached Australian Consumer Laws.

1. Is the company liable or just Victor for the deceit?

2. Has Victor breached any director duties owed to the company and if so, which duty(ies)?