Having done a bit of a search on Google, the only thing it seems that you can't sell in a lay-by is cars.
Most sites I've looked at suggest you contact the local authority and, in the case of food, the health and safety people.
The following is an answer to someone asking about operating a burger van:
i have been running my mobile catering business for 2 years now. y ou do not need council permission as such to trade in any lay-by. You just need to ensure you do everything legally.
What you do is you find a lay-by that you want to trade from, making sure you leave plenty of room when your hatch is open for an artic lorry to pass you.
You will be moved on if you cause any obstruction. When you have found your pitch you then contact the council and they will send their health and safety officer to do a health and safety check. You must have a valid health and safety qualification.
Cost of about £30. Also certs for your gas and electricity, liability insurance. Average £14 p/mnth. you will be sent certs from council for your star rating and certs for you insurance.
Display these they will give your customers faith. there may be a cost for use of trading on the lay-by you choose, varies from council to council. You could pay nothing you could pay upto £500 a year.
You will be given rights to trade from the health and safety officer for 2 years. once you have the rights they are yours only, no one else can trade from there, if they do you can have them moved on.
You can not sell the rights to the pitch. Be wary of this, many ppl try to con others by selling them pitches that are not theirs to sell. Do not buy a pitch off an excisting trader that is on council land.
You will be paying for the knowledge of where the pitch is nothing else. The thing is really, as long as you show the council and locals that you want to trade legally ie. get your insurance,certs, bin for customers use and health and safety check you will find the authorities are very easy going and helpful.
There are many ignorant,filthy don't give a crap traders that ruin it for other traders. Do it right and you can make good money, get a good reputation and your customers will come back and spread the word to others.