If you character commits a crime, witnesses a crime, or is a victim of a crime, you may soon find yourself in court. You can use court to press charges against people, and they can do the same to you. Your character's empathy score helps you to collect evidence of crimes and see through other people's lies, and your rhetoric score helps you to make your case in court.
Punishments can range from simple fines all the way up to execution. Note that if you fail to show up in court, cases will be decided against you. If you were the accused and you failed to show up, you may even be declared an outlaw, giving guards permission to kill you on sight.
On the other hand, if you are accused and you show up but the accuser does not, you may be declared not guilty by default. Rogues can craft items at Vagabond Camps to help them ensure that their opponents miss court.
Certain government positions (typically the mayor among others) have immunity from court proceedings and cannot be charged with offenses while in office. Players with Rogue characters often try to get into such positions to gain the ability to commit crimes without legal consequences.