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 Georgia, dram shop laws are codified under the Official Code of Georgia Annotated (O.C.G.A.) § 51-1-40. These laws allow for a cause of action against alcohol vendors, such as bars, restaurants, and liquor stores, for the injury or damage caused by an intoxicated person if it can be shown that the vendor knowingly sold, furnished, or served alcohol to a person who was noticeably intoxicated at the time of service, and the vendor knew that the intoxicated person would soon be driving a motor vehicle. Additionally, the same liability applies if alcohol is provided to a minor under circumstances where the provider knew alcohol would be consumed by the minor or the provider knowingly and willfully served or sold alcohol to the minor. These provisions are designed to hold alcohol providers accountable for contributing to the intoxication of individuals who subsequently cause harm to themselves or others.