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Source Derivative Actions Nevada Bar Exam Topic Index Matched to this deck.

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The parties dispute the legal effect of a contested transaction. A manager signed a supply agreement after receiving mixed instructions from the owner. 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. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. 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 Derivative Actions and apply it to the operative facts.

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