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 Massachusetts, dram shop laws are codified under General Laws Chapter 138, Section 69. These laws impose liability on establishments that serve alcohol, such as bars, restaurants, and liquor stores, if they serve alcohol to a person who is visibly intoxicated. If the intoxicated person subsequently causes injury or property damage, the establishment could be held legally responsible. The law is intended to encourage responsible service of alcohol and to provide a means of recourse for victims of incidents involving intoxicated individuals. It's important for establishments with a license to serve alcohol to train their staff to recognize signs of intoxication and to refuse service to those who appear to be visibly intoxicated to avoid potential liability under the dram shop law.