The if condition is always true: acceptance1 == 'y' or 'Y'
or is an operator that takes two arguments. If at least one of the arguments is true it will return true. For non boolean values anything that is not zero is treated as true. 'Y' is not zero so the loop condition is equivalent to acceptance1 == 'y' or true, which means that it will always return true.
This means "if (acceptance1 == 'y') is not zero, OR ('Y') is not zero". Since 'Y' is not zero, the if statement is always true. You want to write this:
if (acceptance1 == 'y' or acceptance1 == 'Y')
By the way, the or keyword is generally only used on systems where || cannot be represented. It is traditional to use || and && rather than or and and.