A rather interesting concept, although I wish the player notified clearly on how their decision had changed the faction reputation. There are also some cases which is rather confusing. Like when a Stars defendant cut a fueled line and the reason is that the vehicle is going to hit the Brandilites. Executing said defendant increases Brandilite reputation for some reason. I think it would be better if there a line explaining how the decision influenced the reputation.
Also, when the prompt to fix your reputation comes out it, I think its better if player know which of the factional reputation we're fixing.
I find it to be a little funny that the choice is a binary spare or execute. I don't know if sparing here also includes punishments that are not capital punishment. Perhaps its better for the choice to be either charge the defendant with a crime or not, if you're going to keep the binary.