Legal Definitions - dram-shop act

A dram-shop act is a state law that allows an injured person to seek financial compensation from a commercial establishment that sold alcoholic beverages to a customer who subsequently caused harm due to their intoxication. These laws hold businesses like bars, restaurants, and liquor stores accountable when their sale of alcohol contributes to injuries or damages caused by an intoxicated patron.

Here are some examples illustrating how a dram-shop act might apply:

• Example 1: Impaired Driving Accident

  A local pub serves a customer, Mr. Henderson, several alcoholic drinks over the course of an evening, even though he was visibly intoxicated and slurring his words. Mr. Henderson then leaves the pub, gets into his car, and drives erratically, causing a collision with another vehicle driven by Ms. Chen. Ms. Chen sustains serious injuries in the accident.

  How this illustrates a dram-shop act: Under a dram-shop act, Ms. Chen could potentially sue the pub for her injuries. The pub, as a commercial seller of alcohol, allegedly continued to serve Mr. Henderson despite his visible intoxication. His subsequent intoxicated driving directly led to Ms. Chen's injuries, creating a basis for the pub to be held liable for contributing to the harm.

• Example 2: Altercation on Premises

  At a busy restaurant, a waiter continues to serve alcoholic beverages to a patron, Ms. Rodriguez, who is becoming increasingly loud and aggressive. Eventually, Ms. Rodriguez, in her intoxicated state, gets into an argument with another diner, Mr. Davies, and shoves him, causing him to fall and break his arm.

  How this illustrates a dram-shop act: Mr. Davies could pursue a claim against the restaurant under a dram-shop act. The restaurant, as a commercial seller, allegedly overserved Ms. Rodriguez, contributing to her intoxication and subsequent aggressive behavior. Her actions directly caused Mr. Davies's injury, making the restaurant potentially liable for the harm that occurred on its premises due to its service of alcohol.

• Example 3: Underage Drinking and Property Damage

  A convenience store sells a large quantity of beer to a group of teenagers without properly checking their identification. The teenagers then go to a party, consume the alcohol, and, while highly intoxicated, cause significant damage to the property where the party is being held.

  How this illustrates a dram-shop act: The owner of the damaged property could potentially sue the convenience store under a dram-shop act. By illegally selling alcohol to minors, the store contributed to their intoxication, which directly led to the property damage. The act holds the commercial seller responsible for the consequences of unlawfully providing alcohol that results in harm.