What does 'lemon law' refer to in car sales?

The term "lemon law" refers to legislation specifically designed to protect consumers from purchasing defective vehicles that do not meet quality and performance standards. These laws provide recourse for buyers if a new or sometimes used car has significant defects that impair its use, value, or safety to the extent that the manufacturer cannot repair it satisfactorily after a reasonable number of attempts.

Lemon laws vary by state but generally allow the consumer to seek a refund or replacement vehicle if their car qualifies as a "lemon." This legal framework is crucial for maintaining consumer confidence in the automotive market, ensuring that buyers are not stuck with malfunctioning vehicles that do not perform as expected. Overall, lemon laws serve an essential role in consumer protection within the car sales industry.