Or does the Dispensation negate the captain's judgement?
In words of one syllable - NO!
Just because a circumstance is presented to you, that you are told is now legal because of "blah blah whatever...", there is still the onus on the skipper to ensure that the proposed course of action is also
prudent.
I'm sure we all know, just because something is legal, doesn't necessarily make it sensible and prudent. Amongst other things, we are also paid to exercise good judgement, so that we can avoid, where possible, having to use our skills to dig ourselves out of holes later, that we wish we hadn't gotten ourselves into, either willingly or through coercion.
Standing up and defending your position is however another question.
Some do it without batting an eyelid, some others are more easily led.
Remember, our passengers pay to get there safely.
If they are on time, well thats just an added bonus.