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 South Dakota, dram shop laws are codified under SDCL 35-4-78, which allows for a cause of action against any licensed establishment that sells alcoholic beverages to any person who is obviously intoxicated, if that person subsequently causes harm to another individual due to their intoxication. This means that bars, restaurants, and liquor stores can be held liable for damages if they serve alcohol to someone who is visibly intoxicated, and that person goes on to injure someone else or cause property damage. The law is intended to encourage responsible serving practices among establishments that serve alcohol and to provide a legal remedy for those who are injured as a result of the negligent service of alcohol.