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 Maryland, unlike many other states, there is no statutory dram shop liability. This means that, generally, bars, restaurants, and other establishments that serve alcohol are not held liable for the actions of their patrons after they become intoxicated and leave the premises. Maryland courts have consistently held that there is no cause of action against a vendor for selling or serving alcohol to an intoxicated person who subsequently causes harm to themselves or others. However, Maryland does have laws that prohibit the sale of alcohol to minors and visibly intoxicated persons, and violations of these laws can result in administrative penalties for the establishment. Despite the lack of dram shop laws, establishments are still encouraged to serve alcohol responsibly and may adopt policies to prevent over-service.