Final answer:
The question revolves around the licensee's obligation to disclose material facts in legal proceedings under the adversarial judicial system. Disclosure requires parties to share known evidence or relevant information to ensure fairness.
Step-by-step explanation:
The subject of this question pertains to the obligations of a licensee with respect to the disclosure of material facts in the context of legal proceedings, specifically under the adversarial judicial system. In this system, it is essential for parties involved in a legal case to practice disclosure, which means openly sharing any evidence or relevant information that is known to them. This is a critical component of procedural fairness, ensuring that both sides in a case have the opportunity to be fully informed and can adequately prepare their arguments. Failure to disclose such information could potentially damage a party's case and result in legal ramifications.