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 Arizona, dram shop laws are codified in Arizona Revised Statutes Sections 4-311 and 4-312. These laws impose liability on licensed establishments, such as bars, restaurants, and liquor stores, if they sell or serve alcohol to a person who is either obviously intoxicated or under the legal drinking age of 21, and that person subsequently causes injury or property damage. The establishment must have been aware, or should have been aware, that the person was intoxicated or underage to be held liable. The dram shop laws in Arizona are intended to encourage responsible serving of alcohol and to provide a means of recourse for victims who suffer as a result of the negligent service of alcohol to obviously intoxicated individuals.