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 North Carolina, dram shop laws are codified under North Carolina General Statutes (NCGS) § 18B-121. This statute allows for a person injured by an intoxicated individual to hold an alcohol seller or provider liable if the seller or provider negligently sold or served alcohol to a minor under the age of 21 or to someone who was noticeably intoxicated at the time. The law aims to provide a remedy for those harmed by the actions of an intoxicated person when the intoxication was facilitated by a negligent alcohol vendor. It is important for establishments that serve alcohol to be aware of these regulations and to train their staff accordingly to avoid serving alcohol to minors or those who are visibly intoxicated. Violation of these laws can result in civil liability for the establishment or server involved.