Tiny Epic Dinosaurs

Does the Rival always perform the Special Action, if the Rival should gain Dinosaurs but cannot do so?

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Yes
If the Rival should gain Dinosaurs due to any reason (such as resolving a Rival Rancher Card, Stealing a Dinosaur, or performing a Resource Max Action), while the Rival doesn't have enough space for any of them, then the Rival performs the Rival Special Action.
Related Rule(s)