Cited faulty decree (5)
I believe the answer is:
edict
'decree' is the definition.
(I know this)
'cited faulty' is the wordplay.
'faulty' is an anagram indicator.
'cited' with letters rearranged gives 'EDICT'.
(Other definitions for edict that I've seen before include "Authoritative decree" , "Decree by authority" , "Regulation" , "Legally binding command" , "Formal order" .)