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 Arkansas, dram shop laws are codified under Arkansas Code Annotated § 16-126-103. These laws allow for a cause of action against alcohol vendors for damages caused by the intoxication of individuals to whom they have sold or served alcohol. However, liability is limited to cases where the alcohol was provided to a person who was visibly intoxicated at the time of service or to a minor. The statute specifically states that the individual or entity licensed to sell alcohol can be held liable for injuries or damages caused by an intoxicated person if it can be proven that the vendor sold or served alcohol to that person when they were visibly intoxicated. This means that bars, restaurants, and liquor stores in Arkansas can be held legally responsible if they serve alcohol to someone who is clearly drunk, and that person goes on to cause harm to others, such as in a car accident or through other means. It is important for establishments that serve alcohol to be aware of these laws and to train their staff accordingly to avoid serving alcohol to visibly intoxicated patrons.