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 Michigan, the dram shop law is codified under the Michigan Liquor Control Code. This law holds that a licensed establishment, such as a bar, restaurant, or liquor store, may be held liable for damages if it serves alcohol to a visibly intoxicated person or a minor, and that person subsequently causes injury, death, or property damage to another. The key element for liability under Michigan's dram shop act is that the individual must have been visibly intoxicated at the time they were served. It is important to note that the injured party must prove that the intoxication was a proximate cause of the injury. Additionally, Michigan law requires that any action under the dram shop act must be brought within a specific time frame, typically within the statute of limitations. As with any legal matter, the specifics can be complex, and an attorney with expertise in this area should be consulted for individual cases.