Ship Encounters

Ships in the void are quick and eager to report anyone not completely submitting to their (often unjustified) inspections and confiscations. Simply smiling and waving isn't enough to avoid slowly becoming an enemy of a suspicious faction. To this end, parting with your foe on positive terms can save you reputation loss and perhaps even earn some reputation!

Types of Captains in the Void
Some captains have more authority to report infractions to their princesses and princes than others. The captain types you can encounter in the void are listed here in order of most lawful to least. Note that while Acknowledging opposing ships met in the void is usually a good thing, it can cost you reputation with their foes if they are involved in particular hostile conflicts with each other.

There are many talents that can be used to avoid combat, often without losing reputation as well. These are typically a priority for captains at early levels to save yourself from hostile Military, Pirates, or Zealots. It also protects reputation damage from having to destroy an enemy ship and suffering the serious reputation consequences which can rapidly snowball your reputation downward as more ships are now hostile.

Military Officer

 * Will harm the reputation of anyone departing with 0 or worse hostility.
 * Will raise the reputation of anyone departing with 2+ hostility.
 * Will confiscate illegal goods and mission cargo.
 * Rarely retreats from combat.
 * Will be less hostile if a faction Military Rank is owned by the Captain.
 * May be seized as a prize ship during a Solar War.
 * Military Officers can cancel a fight. Smugglers can reduce hostility enough to (usually) bribe their way out of combat.

Spy

 * Will harm the reputation of anyone departing with 0 or worse hostility.
 * Will raise the reputation of anyone departing with 2+ hostility.
 * Will confiscate illegal goods and mission cargo.
 * Often escapes from combat.
 * May be seized as a prize ship during a Spy War.
 * Acknowledging during a Spy War or Duel of Assassins will lower reputation with opposing faction.
 * Spies and Smugglers can lower hostility enough to (usually) bribe their way out of combat.

Zealot

 * Will harm the reputation of anyone departing with -1 or worse hostility.
 * Will raise the reputation of anyone departing with 2+ hostility.
 * Will confiscate illegal goods and mission cargo.
 * Almost never retreats from combat.
 * May be seized as a prize ship during a Spy War.
 * Military Officers can cancel a fight. Smugglers can reduce hostility enough to (usually) bribe their way out of combat.

Bounty Hunter

 * Will harm the reputation of anyone departing with -1 or worse hostility.
 * Will raise the reputation of anyone departing with 2+ hostility.
 * Will confiscate illegal goods and mission cargo.
 * Rarely retreats from combat.
 * Steel Song Clan Bounty Hunters never accept bribes.
 * Will be less hostile if a faction Edict is owned by the Captain.
 * May be seized as a prize ship during a Solar War.
 * Pirates, Spies, and Smugglers can forge paperwork that reduces hostility enough to (usually) bribe their way out of combat.

Explorer

 * Will harm the reputation of anyone departing with severely negative hostility.
 * Will raise the reputation of anyone departing with 2+ hostility.
 * Will confiscate illegal goods, mission cargo, and will report (lowering rep) of anyone that surrenders to them.
 * Frequently retreats from combat.
 * Acknowledging during a Solar War will lower reputation with the opposing faction.

Merchant

 * Will always offer an option to retreat.
 * Cannot improve reputation.
 * Cannot lower reputation by besmirching your name. (Never bribe a merchant; just retreat and ignore the in-game dialogue.)
 * Always attempts to retreat from combat.
 * May be seized as a prize ship during a Trade War.
 * Pirates can "avoid combat" by seizing all of a merchant's goods without a fight.

Smuggler

 * Will harm the reputation of anyone departing with -2 or worse hostility.
 * Will give more money in tribute than other captains.
 * Frequently retreats from combat.
 * Cargo that requires trade permits may be stolen without consequence.
 * May be seized as a prize ship during a Trade War.

Pirate

 * Will never offer tribute.
 * Rarely retreats from combat.
 * Will confiscate any goods but no mission cargo.
 * Any cargo may be stolen from Pirates without consequence.
 * Fuel may be stolen from Pirates without consequence.
 * May be seized as a prize ship during a Trade War.
 * May be seized as a prize ship during a Spy War.
 * May be seized as a prize ship during a Solar War.
 * Merchants can throw cargo overboard to escape combat at the cost of all of a random cargo. If the pirate boards you they normally take everything.

List of Post-Encounter Talents
These talents automatically fire to mitigate reputation loss from an encounter where you retreat on unfriendly terms or fought in battle and escaped.