The Hedge Knight wrote:What.
That's not what I said at all.
Oh, right. I wasn't reading very closely, was I.
But your thought triggered another one in my head.
Anyway, quick summary:
Unfriendly factions punish you more harshly, friendly factions might let it slide.
Breaking laws hurts your reputation.
(Perhaps we could have bribes on stations -- like Freelancer -- to fix reputations?)
Offenders receive a monetary penalty, repeat offenders may have their ship impounded in exchange for a piece of junk ship.
Offenders may offer to do a mission for the punishing faction and either cooperate (to have their ship returned) or steal the ship given to them to do the mission.
Any other thoughts on the matter of contraband and smuggling?