Anyhoo, what do now? We have a legal system to dismantle, law enforcement officers to re-employ and a lot of judges to keep in hookers and blow.
You are wondering how this happened? Well, a drug has been developed that exaggerates a person's empathy sufficiently that even a complete sociopath no longer wants to cause harm or distress to another living thing.
This'll further entail all prisons, probation services and other related lines of work to eventually be phased out, leaving another swathe of unemployed people.
Do we start this drug program, or would it upset the apple-cart too much?
ps. The drug has already been tested on Charlie Manson, who has now become an avid fan of reality tv shows, and an impressive adept of knitting.
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Pop an Instant KalmerTM every morning, sail through your day without a frown ever touching your forehead.
I'm too much of a nerd: my immediate reaction to the hypothetical was that the drug would turn 0.01% of the population into cannibalistic rage-zombies.
Back to the OP. I tihnk you just described the opening plot of Blake's Seven.
Then again, instead of giving it to everyone, perhaps it would be better to give it just to those people convicted of crime. At that point they would never be in a state to commit a crime again.
However, even if you manage to stop people like this, you would not be able to get rid of the Legal Service. It would still be required for things like contracts, business law and personal law although it would be a lot more relaxed than nowadays.
And as a beneficial side-effect, we also remove all psychotics who are protected by a badge and a uniform from positions of authority, too. Double-bonus.
Use it as a deterrent and then people will think twice about committing a crime, seeing as they will spend the rest of their days in a drugged out screaming horror.
But this is a little off-topic, so I'll shut up waffling.