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The parties dispute the legal effect of a contested transaction. A business knew of a hazard but delayed warning customers before an unusual injury occurred. The disputed action was partly authorized but exceeded an important limitation. The parties disagree about the legal effect of those facts. Which option gives the best analysis?

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Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested. Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Negligence Duty and apply it to the operative facts. Reject the claim or defense solely because the opposing party disputes a required fact.

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