It is important to note that although it is a best practice to set your conflict handling settings to be the same for both outbound and inbound servers within a connection, you are not required to do so. Therefore, if you wanted conflicts handled differently on one server versus another, it is possible to do so by setting each server to a different setting.
You must think of conflicts as a uni-directional event. A conflict will only ever occur at one side, flowing in the direction of outbound to inbound with the conflict occurring on the inbound server. It is therefore the settings on the inbound server for conflict resolution that will be applied.