The best replacement for penalty is liquidated damages.

The best alternatives to penalty are rated as following:
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★★★  life in prison
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★  life in prison costs
★  capital punishment
★  crime rate
★  life in prison cost
  game misconduct
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  euthanasia
  damages
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Your alternative for penalty is not listed? Suggest!
Speaking about penalty, one probably shouldn't forget about obamacare.

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penalty
liquidated damages
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