What is a “lemon law” in the context of auto sales?

A lemon law is specifically designed to protect consumers who purchase vehicles that are found to have significant defects or issues that impair their use, safety, or value. In this context, the law provides remedies for individuals who buy defective vehicles, often allowing them to receive repairs, replacements, or refunds for the vehicle if specific conditions are met.

This legal framework typically requires the manufacturer or dealer to address substantial defects within a certain timeframe or number of repair attempts. If they cannot resolve the issues, the consumer can enforce their rights under the lemon law. This protection is especially important for consumers, as it ensures that they have recourse if they invest in a vehicle that doesn't perform as expected.

The other options relate to different aspects of car sales but do not accurately capture the essence of what a lemon law represents. For instance, while regulations about low-quality cars or a dealer's responsibilities may be relevant to the broader context of auto sales, they do not specifically address the consumer's rights regarding defective vehicles. Neither do tax incentives play a role in the definition or function of lemon laws. Thus, focusing on the law's protective purpose for consumers clearly highlights why the correct answer pertains to remedies for defective vehicles.