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A person affected by government action files suit and challenges the legal basis for that action. A private association enforced a rule after extensive government encouragement and participation. 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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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. Import a rule from a nearby issue instead of applying the rule triggered by these facts. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for State Action and apply it to the operative facts.

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