Business executives and owners looking for suppliers often research exhaustively. They compare not just prices but the quality of the materials provided. For example, those in the construction sector may need to bring in large amounts of fill dirt before laying sod after the completion of a home construction project. Those operating industrial facilities may need reliable sources of chemicals or raw materials, such as steel.
Contracts with vendors help lock in pricing and delivery dates so that businesses can rely on those outside organizations for the materials they need to complete their work. Unfortunately, some companies engage in fraudulent practices by providing samples of a certain quality and then delivering materials that are substandard.
Bait-and-switch fraud can lead to manufacturing nightmares and challenges in sourcing materials at the last minute. In some cases, the delivery of poor-quality materials may warrant a breach of contract lawsuit.
Bait-and-switch fraud is relatively common
In the aforementioned scenario where a construction firm contracts with a supplier for fill dirt, they might receive dyed, augmented sand instead of topsoil that can properly support the sod placed in a client’s yard. In such scenarios, the business that receives substandard materials could be at risk of facing lawsuits from consumers and suffering major reputation damage.
Provided that the initial agreement is very clear about expectations regarding quality, it may be possible to take legal action when what a company delivers does not align with what it promised. A judge hearing bait-and-switch fraud claims has several options available to them.
They might order specific performance and compel the supplier to provide the materials initially promised. Other times, they may award the plaintiff damages as a means of reimbursing them for the losses incurred due to the fraudulent activity of the supplier. A judge can also sever contractual obligations, eliminating the need to continue purchasing through a supplier who has not lived up to its prior commitments.
Some business owners and executives treat bait-and-switch fraud as an expensive lesson, but it can also be an actionable form of business misconduct that leads to business litigation. Holding outside organizations accountable for misrepresenting what clients should receive can compensate a business for the damage caused by bait-and-switch fraud and diminish the economic motive for a vendor or supplier to continue engaging in such practices.
