Most states have a dram shop law to deter providers of alcoholic beverages (servers, liquor stores, bars, restaurants) who sell or serve alcoholic beverages under authority of a license or permit from selling or serving alcoholic beverages to obviously intoxicated individuals.

These laws generally eliminate any liability of servers, liquor stores, bars, and restaurants when a person to whom they sell or serve alcohol causes personal injury or property damage—whether in an automobile accident, a fight, or other incident—unless the person to whom they sell or serve alcohol is obviously intoxicated.

Laws regarding dram shop liability vary from state to state and are usually located in a state’s statutes.

In Georgia, dram shop laws are codified under the Official Code of Georgia Annotated (O.C.G.A.) § 51-1-40. These laws allow for a cause of action against any person who knowingly sells, furnishes, or serves alcoholic beverages to a person who is in a state of noticeable intoxication, if it is known that the intoxicated person will soon be driving a motor vehicle. Additionally, the law applies to those who provide alcohol to a minor knowing that the minor will soon be driving. If the intoxicated or underage individual subsequently causes injury or damage as a result of their impairment, the provider of the alcohol can be held liable. This statute is designed to provide a legal remedy for those injured by intoxicated individuals and to encourage responsible serving practices among those licensed to sell or serve alcohol.