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 Ohio, dram shop laws are codified under Ohio Revised Code Section 4399.18, which allows for a cause of action against permit holders, such as bars, restaurants, and liquor stores, for injuries caused by intoxicated persons. Under this statute, liability arises if the establishment knowingly sold alcohol to a visibly intoxicated person or to a minor, and the intoxication of that person proximately caused the injury, death, or property damage. It is important to note that the standard for liability is based on the server's knowledge of the patron's intoxication level or age. These laws are designed to hold alcohol vendors responsible for harm that results from illegal sales to intoxicated individuals or minors, while also providing a deterrent against such sales.