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 North Carolina, dram shop laws are codified under North Carolina General Statutes (NCGS) § 18B-121. This statute allows for a cause of action against alcohol sellers, such as bars, restaurants, and liquor stores, if they negligently sell alcohol to a person who is visibly intoxicated at the time of sale, and that person subsequently causes injury or property damage as a result of their intoxication. The law specifically targets situations where the injury or damage is caused by an underage person or an intoxicated adult. For an injured party to recover damages under this law, they must prove that the seller knew or should have known that the person was intoxicated and that the sale of alcohol was a proximate cause of the injury or damage. It's important to note that North Carolina's dram shop law does not protect alcohol sellers from liability in all circumstances; rather, it sets the conditions under which they can be held liable.