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Discretion is defined as the right of someone to make choices or the quality of someone who is careful about what they do or say. An example of discretion is the ability of a juror to determine a verdict. An example of discretion is not talking about politics at family dinners.
The classic example of police discretion happens when you get pulled over for speeding. Sometimes you might get a ticket, while other times you might just be let off with a warning. Oftentimes appealing to police discretion is the best way to avoid hefty fines or tickets.