What is prima facie evidence of being engaged in the business of selling motor vehicles?

The correct answer is based on the understanding of what constitutes a business activity in the context of selling motor vehicles. Selling or offering over three vehicles at a time is considered prima facie evidence of being engaged in the business of selling motor vehicles because it indicates a consistent and ongoing practice rather than a casual or incidental sale. This threshold is important as it distinguishes between someone who is a casual seller—perhaps an individual selling their own vehicle occasionally—and a business that engages in sales as its primary activity.

This differentiation is essential for regulatory purposes, as it helps ensure that those regularly selling vehicles comply with necessary licensing, registration, and financial obligations. This approach protects consumers and ensures market integrity by requiring sellers who meet this threshold to adhere to state and local regulations governing vehicle sales.

In contrast, selling fewer than three vehicles does not provide sufficient evidence to classify an individual or entity as engaged in the business of selling, as it may reflect private sales rather than commercial activity. Having a physical storefront or advertising in a local newspaper may be indicative of business activity, but they do not alone establish a seller's engagement in the business of selling motor vehicles unless this is done consistently with a higher volume of sales. Hence, the criterion of selling or offering over three vehicles at