This article attempts to assess the role of courts and other adjudicative institutions in the definition, interpretation, and management of conflict. Understanding the function of courts requires an understanding of a society's entire range of conflict management mechanisms. Particular emphasis is placed on those variables most likely to determine where and how conflicts will be solved.Adjudicative institutions can be effectively differentiated by a typology which measures the level of formality in procedures and the degree of “publicness.” The structure of a dispute-resolving institution will have an important effect on which disputes are presented to it and how they are decided. The nature of the dispute, goals of the disputants, social context, and political culture are also important variables.Government has an important stake in the manner in which disputes arise and are resolved. It may promote or require the resolution of some disputes in the courts while allowing others to be resolved in less public and formal arenas. Formal litigation may provide a model for private dispute resolution. It may also absorb and deflect grievances before they escalate into more organized and intense demands on the political system. Finally, litigation may have an important effect on system stability by promoting support for regime values.