Most of the comments above have misunderstood this function. It does not need to escape characters such as '$' and '`' - it uses the fact that the shell does not treat any characters as special inside single quotes (except the single quote character itself). The correct way to use this function is to call it on a variable that is intended to be passed to a command-line program as a single argument to that program - you do not call it on command-line as a whole.
The person above who comments that this function behaves badly if given the empty string as input is correct - this is a bug. It should indeed return two single quotes in this case.