dram shop rule
A dram shop rule (dram shop law or dram shop act) is a civil liability statute that renders a dram shop liable for the harmful acts of its intoxicated customers when the establishment acts negligently in serving the intoxicated customer alcohol, and the customer then causes harm (usually to a third-party victim) as a result of his/her intoxication (examples include drunk driving accidents and bar fights). While most jurisdictions limit liability to only cover harm to third parties, some, such as Pennsylvania ( Schelin v. Goldberg ), extend this liability to cover first-party harm, giving a patron a cause of action against the establishment for any injuries the individual may have sustained as a result of his/her own intoxication.
A dram shop is a commercial establishment that sells alcoholic beverages (examples include bars, taverns, and restaurants). While most jurisdictions limit dram shop liability to commercial establishments, some jurisdictions (such as Maine ) extend liability to social hosts.
Dram shop laws in most jurisdictions establish liability on a negligence (i.e., not strict liability) basis, for serving alcohol to a patron whom the server knows or reasonably should know is intoxicated, or for serving alcohol to someone under the legal drinking age.
[Last reviewed in June of 2021 by the Wex Definitions Team ]
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