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The parties dispute the legal effect of a contested transaction. A witness offered an opinion based partly on observation and partly on specialized training. 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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The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Witness Competency and apply it to the operative facts. Import a rule from a nearby issue instead of applying the rule triggered by these facts. Reject the claim or defense solely because the opposing party disputes a required fact. Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits.

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