EQUITY THEORY VIEWS SOCIAL INTERACTION AS A PROCESS OF RECIPROCAL EXCHANGE, GOVERNED BY A NORM OF DISTRIBUTIVE FAIRNESS. THE THEORY HOLDS THAT, WHEN PEOPLE FIND THEMSELVES PARTICIPATING IN INEQUITABLE RELATIONSHIPS, THEY BECOME DISTRESSED AND ATTEMPT TO ELIMINATE THEIR DISTRESS BY RESTORING EQUITY. THE PROBABLE IMPACT OF EXISTING PROCEDURES WITHIN THE U.S. LEGAL SYSTEM FOR RESTORING EQUITY TO THE OFFENDER-VICTIM RELATIONSHIP IS DISCUSSED IN LIGHT OF EQUITY THEORY. WAYS IN WHICH COMMON LAW CIVIL LITIGATION MAY ACTUALLY DISCOURAGE PARTICIPANTS FROM MAKING EXACT COMPENSATION ARE NOTED (THE NEED TO DETERMINE WHO IS AT FAULT, DELAYS IN JUDGMENT, PRESSURES TOWARD BARGAINING). AN EQUITY-BASED ANALYSIS OF RESTITUTION PROGRAMS POINTS OUT CONSIDERATIONS TO BE MADE IN DESIGNING RESTITUTION PROGRAMS. THE EFFECTS OF PRODDING OR FORCING WRONGDOERS TO MAKE RESTITUTION ARE CONSIDERED, AS ARE THE EFFECTS OF AN AGENCY'S PROVIDING COMPENSATION TO THE VICTIM IN LIEU OF RESTITUTION BY THE WRONGDOER. PRACTICAL PROBLEMS LIKELY TO BE ENCOUNTERED BY RESTITUTION PROGRAMMERS, INCLUDING THOSE STEMMING FROM THE OBSERVATION THAT EQUITY IS ALWAYS IN THE EYE OF THE BEHOLDER, ARE DISCUSSED. IT IS POINTED OUT THAT, BECAUSE DIFFERENT RESTITUTION PROGRAMS CAN HAVE MARKEDLY DIFFERENT IMPACTS ON PARTICIPANTS, SOCIETY MUST CLOSELY EXAMINE ITS GOALS IN INSTITUTING ANY RESTITUTION PROGRAM. IT IS CONCLUDED THAT THERE APPEARS TO BE CONSIDERABLE COMPATIBILITY BETWEEN RESTITUTION AND OTHER GOALS OF THE CRIMINAL JUSTICE SYSTEM, SUCH AS DETERRENCE, RETRIBUTION, AND REHABILITATION. NOTES ARE INCLUDED. (LKM)