Dram Shop Liability

Plain English

Dram shop liability holds businesses that sell alcohol accountable when they serve drinks to someone who is already drunk or visibly intoxicated, and that person then causes injury or damage to others. The law recognizes that the bar or store had a duty to refuse service in these situations. If they fail to do so and the customer harms someone—say, by driving drunk—the business can be sued for those damages. The idea is to discourage over-serving and create an incentive for responsible alcohol service.

Example

A bartender serves six shots to a regular customer who is already slurring his words. The customer leaves, gets behind the wheel, and causes a car accident that injures another driver. That injured driver can sue the bar under dram shop liability, arguing the bartender should have refused to serve more alcohol.

Used in a sentence

“The restaurant faced dram shop liability after serving a visibly intoxicated patron who later caused a drunk-driving accident.”

How Dram Shop Liability differs by state

Dram Shop Liability can apply differently depending on the state. Click a state to see local specifics.

Related terms