In product substitution fraud, what occurs?

In product substitution fraud, the fundamental principle involves the delivery of a lower-grade material than what was originally specified or ordered in the purchase agreement. This deceptive practice occurs when a supplier uses substandard materials to fulfill a contract, often to cut costs or maximize profit margins. This compromises the quality of the final product and can lead to significant issues for the buyer, including financial loss and potential safety hazards.

By delivering inferior goods instead of the agreed-upon specifications, the integrity of the transaction is violated. This type of fraud is particularly harmful because it can go undetected until after the product has been used or integrated into a larger project, at which point the repercussions can be extensive.

In contrast, the other choices provided describe scenarios where the delivery meets or exceeds the contractual specifications, which would not constitute fraud. High-quality materials delivered as specified or matching the purchase order do not represent fraudulent behavior, as they adhere to the agreements made between the buyer and seller.