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Many wizards live dual identities, one in the magic world and another in the muggle world. So, they need to follow muggle laws, too. Also, they are protected by muggle laws (they have certain rights given by muggle laws).

Let's say, a muggle court found a wizard guilty because he was making some kind of dangerous liquid (potion) without the necessary authority, what would Ministry of Magic do?

Another situation: A wizard killed someone with Avada Kedavra and went to muggle enforcement for protection. According to muggle laws, the wizard didn't break any laws (nobody can prove that murder having no physical wound, external or internal). What would Ministry of Magic do?

What's the general policy in case of conflict with muggle laws? They can't really initiate a diplomatic interaction with muggle government provided that there's International Statute of Wizarding Secrecy in place.

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    "Many wizards live dual identities, one in the magic world and another in the muggle world". Many??? – DVK-on-Ahch-To Nov 22 '14 at 14:35
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    This is pure speculation, but given that the Ministry of Magic is a legitimate ministry of the Government, wouldn't any conflicts with the established, non-magical, law be simply resolved via the Home Secretary who could potentially restrict the police force's actions, leaving the guilty wizard to the Ministry (for appropriate punishments), or simply escalate the matter to the current monarch (to act under direction) to issue a 'Royal prerogative of mercy, or to the Lord Chancellor to act that monarch's behalf? – David Thomas Nov 22 '14 at 14:36
  • @DVK Well, from the canon, that pub was in the heart of the city and several wizards wander around in the muggle world. Also, there are mudbloods, half-bloods. Provided there's International Statute of Wizarding Secrecy in place, they'll have to live dual identities. – Avenge The Fallen Nov 22 '14 at 14:41
  • @David There's International Statute of Wizarding Secrecy in place which could prevent such diplomatic interactions. – Avenge The Fallen Nov 22 '14 at 14:45
  • @Sachin: ah, my above speculation was written absent any knowledge of the Harry Potter universe (which is, of course, a problem all by itself), with the exception of one and a half of the films; but it felt appropriately logical. – David Thomas Nov 22 '14 at 14:49
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I think your initial assumption - that witches and wizards have to follow muggle laws - is just flat wrong. Magic gives witches and wizards so much power that the only thing keeping them from taking over is that there's so many muggles. In your first example, no muggle would even know about potions to begin with, so "Legal" and "Illegal" just doesn't enter into it. In your second example, no muggle court of law, protective custody, witness protection, or even all-out military force can stand up to a group of aurors. The muggle world has no protection to offer.

In short, for witches and wizards the only laws that matter are the ones enforced by the Ministry of Magic. There is no conflict with muggle laws because muggle laws simply don't count - they're unenforceable.

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    Nuclear-powered countries can demolish poor countries any time, but there's a difference between capability and policy. – Avenge The Fallen Nov 22 '14 at 1:47
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    Also, the only thing keeping wizards from taking over is the fact that there are more good wizards than bad ones. – Avenge The Fallen Nov 22 '14 at 1:49
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    Also, if a potion is doing damage in muggle sense, it's illegal. – Avenge The Fallen Nov 22 '14 at 1:50
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    I agree with @SachinShekhar. If a potion leaves traces in the victim, it can be argued they were poisoned (even if the details can't be understood by muggles), and can be used as evidence in court. – Arturo Torres Sánchez Nov 22 '14 at 3:39
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    @Richard True, an entire dept consisting of TWO people :P - though they do have another one that provides muggle-worthy excuses, so if those two depts worked together (and let the Obliviator's deal with the remaining loose ends) I think it's a fair assumption that - as far as muggles are concerned - whatever it was that happened never happened once the MoM is done. – BMWurm Nov 22 '14 at 12:13
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Though the scope of 'diplomatic relations' maybe limited, there is regardless a channel for this in the form of the Minister of Magic's interaction with the Muggle Prime Minister.

But I think the more significant answer lies in the pragmatic things that come form the the operations of the Department of Magical Accidents and Catastrophes. In their operation, we can see examples that clearly indicate that muggle law is circumvented — at least insofar as the case of reversible actions and like accidents:

....one such accident in 1993, when Harry Potter inadvertently used magic to inflate his "Aunt" Marge. They were able to successfully reverse the spell, deflate her, and modify her memory to remove any recollection of the incident. Presumably this memory modification was performed by Obliviators, according to their duty.

You other situation is quite similar, despite involving a harmful act to a human. ("A wizard killed someone with Avada Kedavra and went to muggle enforcement for protection.")

Such an incident could be reversed and erased, too — though we presume that the consequences for the Wizard (outside of the anti-muggle policies during Pius Thicknesse's time, etc.)

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