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 Montana, dram shop laws are codified under Montana Code Annotated § 27-1-710. These laws impose liability on establishments like bars, liquor stores, and restaurants that sell or serve alcohol to individuals who are obviously intoxicated or under the legal drinking age if that individual subsequently causes injury or damage as a result of their intoxication. The law is designed to encourage responsible serving practices and to provide a means of recourse for victims injured by intoxicated individuals. It is important for establishments that serve alcohol to be aware of the signs of intoxication and to refrain from serving alcohol to those who are visibly intoxicated or to minors to avoid potential liability under Montana's dram shop statutes.