Legal Definitions - dram shop

A dram shop is a legal term referring to any establishment that sells alcoholic beverages for consumption on its premises. This includes a wide range of venues such as bars, restaurants, taverns, nightclubs, and even certain event venues or private clubs that serve alcohol.

The term is most frequently encountered in the context of "dram shop laws," which are state-specific statutes that can hold these establishments liable for damages or injuries caused by their intoxicated patrons. This liability typically arises if the establishment served alcohol to a visibly intoxicated person or to a minor, and that person subsequently caused harm to themselves or others.

Here are some examples illustrating the concept of a dram shop:

• Example 1: "The Thirsty Whale" is a popular downtown bar known for its craft beers and cocktails. One Friday night, a patron named Mark orders several strong drinks over a short period. Despite showing clear signs of intoxication, the bartender continues to serve him. Mark eventually leaves the bar, gets into his car, and causes a minor fender bender on his way home. In this scenario, "The Thirsty Whale" acts as a dram shop. Under applicable dram shop laws, the bar could potentially be held liable for the damages from the accident because its employee allegedly served alcohol to a visibly intoxicated individual.

• Example 2: A large hotel hosts a wedding reception in its ballroom, where an open bar is provided and staffed by hotel employees. During the reception, a guest who is underage manages to obtain and consume several alcoholic beverages without being asked for identification. Later, this underage guest becomes disruptive and causes property damage within the hotel. The hotel, through its catering and bar service, functions as a dram shop. It could face legal consequences under dram shop laws for serving alcohol to a minor, potentially being held responsible for the resulting damages.

• Example 3: "Sports Fanatics Arena" sells beer and wine at various concession stands during a professional basketball game. A fan, already appearing unsteady and slurring their words, purchases another large beer from a vendor. After the game, this fan gets into an altercation with another attendee in the parking lot, resulting in injuries. The "Sports Fanatics Arena," by selling alcohol through its concession stands, operates as a dram shop. If it can be proven that the arena's staff negligently served alcohol to an obviously intoxicated person, the arena might be held liable for the injuries sustained in the parking lot incident.