Cost of living isn't the same everywhere and perspective is relative.
Rent in my area averages around 3k USD/mo for fairly plain arrangements. Between that and "unavoidable" costs like utilities, you'd get 3-4 months max on that amount, even living frugally. It really isn't that much for a lot of people, even if that amount might be to you.
It means the manufacturer is required to offer to buy it back. If the manufacturer resells it after fixing the issues, there must be paperwork attached and given to the next purchasers stating that it was a lemon.