Dramatic form of art limited by ethical failing (10)
I believe the answer is:
theatrical
'dramatic form' is the definition.
(thesaurus)
'of art limited by ethical failing' is the wordplay.
'of' indicates anagramming the letters (the answer comes from or 'of' the letters).
'limited by' is an insertion indicator (limit can mean to contain or border off).
'failing' indicates an anagram.
'art' with letters rearranged gives 'atr'.
'ethical' is an anagram of 'theical'.
'atr' placed into 'theical' is 'THEATRICAL'.
(Other definitions for theatrical that I've seen before include "Artificial and exaggerated" , "Relating to acting/actors" , "Showbiz" , "Actor" , "Excessively dramatic" .)