​Flowing Stream Townhouse Development's Homeowners' Association Has Adopted a Rule

Multiple Choice

​Flowing Stream Townhouse Development's homeowners' association has adopted a rule that no owner can sell or lease his or her unit to a Tier 3 registered sex offender. Alice Strom is a Flowing Stream owner who has sold her townhome to a registered Tier 3 sex offender. The homeowners' association board has refused to allow the buyer to move into his townhome and has obtained a court injunction prohibiting his taking occupancy.
-What standard will the court use in reviewing the actions of the association board?

A) The business judgment rule
B) Whether the rule is a breach of privacy
C) Whether the rule is wise
D) Whether the rule is a common one for homeowners' associations