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The parties dispute the legal effect of a contested transaction. State law imposes a claim requirement that conflicts with a federal litigation practice. 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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Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested. Reject the claim or defense solely because the opposing party disputes a required fact. 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 Erie Doctrine and apply it to the operative facts.

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