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The parties dispute the legal effect of a contested transaction. A consumer was injured by a product lacking a feasible guard and adequate warning. The record contains both written proof and disputed oral testimony. The parties disagree about the legal effect of those facts. Which answer gives the best resolution?

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The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Strict Liability and apply it to the operative facts. Import a rule from a nearby issue instead of applying the rule triggered by these facts. Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements. Reject the claim or defense solely because the opposing party disputes a required fact.

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