The Law of Karma revolves around two aspects: the mundane and the cosmic. The mundane is based upon the character's Elements as a guiding force in action resolution. The cosmic is based upon the principle: "What goes around comes around". Thus if the character decides to knock a frail old lady on her behind, perhaps for no other reason to get to the front of a line, then it is likely that some negative event will revisit the character at a later date due to this action.
The Law of Drama revolves around the question: "What is best for the narrative at this given point in the story?" What outcome would further the story, add excitement, intrigue, and/or interest? What need does the plot have to make the story more engaging and enjoyable? The Law of Drama, though, still relies on the possible and the probable. The Law of Drama still needs to create events that are believable, else the players will find them less satisfying.
The third law consists of the random aspect of the game. Yes, this game is diceless, but that does not mean that Mr. Tweet has thrown chance out the window.
The Law of Fortune revolves around the 36 card Fortune Deck. Each card has two aspects -- Normal and Reversed -- which make for 72 possibilities. These possibilities are further extended due to the interpretive nature of the cards. Any single card could be interpreted in a number of different ways. The GM may decide that the picture on the card (and whether it is inverted or not) has more meaning than the traditional naming of the card itself. The GM may lend more meaning to the aspects of the card (all card have aspects aligned to different elements, planets, and the zodiac). There is no right or wrong way to interpet the cards, but their should be some rational explanation to the interpretation (though you won't always show these cards to the players, a good GM will know when to show for effect and when to hide for mystery).
The GM can use any of the Laws to resolve actions, or can use a combination. For instance, in the footrace example above, the GM might use the Law of Karma and the Law of Fortune. The Law of Karma dictates that the person with the better Fire Element will win the footrace, but I might choose to use the Law of Fortune as well, drawing a card. Perhaps I draw The Satyr (Indulgence). I might interpret this to mean that the character, so focused on the race, not only wins but wins by a huge margin. The character has won the race (as dictated by the Law of Karma), but doesn't engender the love or admiration of the crowd, due to the fact that he makes his opponent look foolish and incompetent (as dictated by the Law of Fortune). If I'd instead drawn the Satyr Reversed (Moderation), I might interpret this to mean that the character ensures a close race so that his opponent can walk way from it with pride. The excitement of the race would engender admiration for both participants. The Law of Karma says that the character will always win the race, but the Law of Fortune says that there'll be some random positive or negative outcome to the event.
(Of course, if the player had stated before the race, and before a Fortune Card had been drawn, that they were going to ensure it was a close race, so as to not embarass their opponent, then the Satyr card would require a different interpretation; Fortune cannot override the "karmic" decisions of the players.
The GM might not use either the Law of Karma or the Law of Fortune to determine the outcome of the race. He might decide to solely use the Law of Drama, deciding at that moment what was more important to the story. She might determine that for the narrative's sake, it was more important that the character lose this particular race (perhaps stumbling near the finish line), building up a potential rivalry between the two opponents. Perhaps building up towards a possible rematch.