dram shop rule
A dram shop is a commercial establishment that sells alcoholic beverages; examples include bars and restaurants. A dram shop rule, or dram shop laws, hold alcohol-serving businesses liable when they serve visibly intoxicated or underage patrons who later cause harm. Most jurisdictions limit this to harm suffered by others, but some allow intoxicated patrons to sue for their own injuries. While these laws typically apply to commercial establishments, some states also extend liability to social hosts; see e.g. Maine. These laws are usually based on negligence and not strict liability.
[Last reviewed in July of 2025 by the Wex Definitions Team]
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