Legal case covering university sale (7)
I believe the answer is:
auction
'university sale' is the definition.
'auction' can be an answer for 'sale' (public sale). I'm unsure of the 'university' bit.
'legal case covering' is the wordplay.
'legal' becomes 'u' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'case' becomes 'action' (both refer to legal proceedings).
'covering' is an insertion indicator.
'u' going inside 'action' is 'AUCTION'.
Can you help me to learn more?
(Other definitions for auction that I've seen before include "Public sale by bid" , "Use caution at public sale" , "Public sale to highest bidders" , "Selling" , "Occasion of lots under the gavel" .)