Cryptic crossword clue
Decides penalties to be applied to case of damage 7

The most common and most likely answer to this crossword clue is the 7 letter word DEFINES

I've seen this crossword clue in The Daily Telegraph
D
E
F
I
N
E
S

Buddy explains!

The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does DEFINES mean?

DEFINES verb
  1. To determine with precision; to mark out with distinctness; to ascertain or exhibit clearly.
  2. To settle, decide (an argument etc.)
  3. To express the essential nature of something.
  4. To state the meaning of a word, phrase, sign, or symbol.
  5. To describe, explain, or make definite and clear; used to request the listener or other person to elaborate or explain more clearly his or her intended meaning of a word or expression.
  6. To demark sharply the outlines or limits of an area or concept.
  7. To establish the referent of a term or notation.

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