In Morrowind, there are many laws and regulations. The basics are that you're not allowed to steal, trespass, start fights, or kill. If you are caught breaking a law, you will receive a bounty that you will have to pay, whether it be in Drakes, manual labor, or blood. Remember that you are allowed to kill out of self-defense. If you wish to murder someone that's in a house that belongs to them and they're the only one in that house, you can kill them without being fined.
Committing a crime in public is not recommended. If you are caught, and resist arrest all the guards in the area will attack you and any citizens with a disposition lower than 30 in combination with an aggressiveness level of 50 or higher (NPC level only).
Pickpocketing- 10gp + price of item stolen
Thieving- 10gp + price of item stolen
Trespassing- 5gp - 25gp
Above is the amount you will have to pay if you commit a crime. Remember that if you continue to commit crimes without paying them off that the bounty will continue to stack up. If you are caught commiting a crime you will be approached by a guard. The guard will tell you that you are under-arrest and you will have three options:
1- Pay the fine: Pay off your bounty with your own gold and return any stolen items that are in your inventory. If you plan to do this it is suggested that you drop your stolen goods before talking to a guard, and after you pay your bounty pick up the stolen items that you dropped. Remember that you will have to do this every time you are going to pay off a bounty. If you select this option without dropping you stolen goods they will be taken away and put into the nearest "Evidence" chest. There is one in every jail and in the Census Office of Seyda Neen.
2. Go to jail: Hard Labor. You will be taken to jail for a set amount of time according to how large your bounty was and you will also lose a certain amount of levels in certain skills. The amount you lose depends on how high your bounty was. You do not play while you're in jail. Think of it as resting right after a guard arrested you, then waking up outside of a jail with lowered skills.
3. Resist Arrest: Feeling a little rebellious? Well, if you select this option you won't have to pay any gold or give back anything you've stolen...but you will have every guard nearby attacking you until you die or run very far away. Just remember that every time you kill a guard it will add another 1000gp to your bounty.
It is possible to get a discount on your bounty. The following are the two ways to receive a discount.
1. The Thieves Guild: Joining the Thieves Guild certainly has it's advantages. One of the advantages being that you can pay off your bounties at half price without losing any of your stolen goods. Each guild has a person who can do this for you.
2. Talk it out: This one won't help much, but it's better than nothing. If you have a bounty and you talk to a guard they will give you a slight discount if you decide to pay it off. The discount usually depends on the bounty, but remember that you will still lose your stolen items.