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Alcohol Server · Alcohol Laws and Regulations

What is 'dram shop' liability?

Correct answer

Laws under which an establishment can be held liable for harm caused by a customer it served unlawfully (such as an intoxicated person who then injures someone)

  1. A A tax on alcohol sales
  2. B Laws under which an establishment can be held liable for harm caused by a customer it served unlawfully (such as an intoxicated person who then injures someone)
  3. C A type of liquor license
  4. D A rule about drink sizes

Why this is the answer

Dram shop liability refers to laws in many states under which an alcohol-serving establishment (and sometimes the individual server) can be held legally responsible for damages caused by a customer who was served unlawfully — for example, serving an obviously intoxicated patron who then causes a car crash and injures someone. The specifics vary by state. Dram shop laws are a major reason responsible service matters: they create direct financial and legal consequences for over-serving. Understanding this concept underscores the server's role in preventing harm.
Source: Responsible Beverage Service — Dram Shop Liability

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