How Did President John F

question 128

Essay

How did President John F. Kennedy change the concept of American business culture away from caveat emptor in the 1960s?
Before the 1960s, the legal concept of caveat emptor (let the buyer beware) was pervasive in American business culture. In 1962, President Kennedy codified a Consumer Bill of Rights that was intended to regulate the ethics of exchange between buyers and sellers. Ethical exchanges between buyers and sellers should result in both parties being better off after a transaction. The Consumer Bill of Rights includes the rights to safety, to be informed, to choose, and to be heard.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used to assess the value of future cash flows in today's dollars.

Recognition

The formal acknowledgment in accounting of a transaction or event's impact on the financial statements.