LEGAL ASPECTS OF RENEGOTIATION

The Renegotiation Act which became effective April 28, 1942, was designed to eliminate and remove exorbitant profits from war contracts. No other recent statute has been the subject of so much controversy and misunderstanding. Since the beginning of renegotiation of contracts in the late summer and early fall of 1942, policies have been crystalizing and many interpretations of the act have been made, but many more questions as to its meaning must still be answered.