What is "dram shop liability"?

Dram shop liability refers to the legal responsibility that alcohol-serving establishments hold for the actions of their patrons, particularly if those patrons cause harm to themselves or others while under the influence of alcohol purchased at that establishment. This concept is rooted in the idea that businesses selling alcohol have a duty to serve responsibly and monitor the behavior of their customers. If a patron becomes intoxicated and later engages in reckless behavior—such as driving under the influence—the establishment may be held liable for contributing to that situation by over-serving alcohol. This legal framework encourages servers and establishments to practice responsible alcohol service to prevent potential harm and protect both patrons and the community.