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The parties dispute the legal effect of a contested transaction. A party lost a first suit and then repackaged the same transaction under a new legal theory. The decision maker must choose between a categorical shortcut and a fact-sensitive standard. 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 Claim and Issue Preclusion and apply it to the operative facts. Reject the claim or defense solely because the opposing party disputes a required fact. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested.

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