This question mostly looks for honesty and for the realization that most conflicts have two sides to a story. It also opens the door for people with poor character to start bashing their previous employer, something which leaves a bad taste in most interviewers’ mouths. The best way to answer usually involves telling the story, but showing within it that there are two sides to that story and that you’ve learned from the experience to try to see the other person’s perspective.   _{Your Comment}