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 Dakota, dram shop laws are codified under North Dakota Century Code 5-01-06.1. These laws allow for a cause of action against any licensed individual or entity that sells or serves alcoholic beverages to an individual who is obviously intoxicated, if the intoxication is a proximate cause of injury, death, or property damage. This means that bars, restaurants, liquor stores, and servers with a license to sell alcohol can be held liable if they serve alcohol to someone who is clearly intoxicated and that person goes on to cause harm to themselves or others, or damage property. It is important for establishments and servers in North Dakota to be aware of the signs of obvious intoxication and to refrain from serving alcohol to such individuals to avoid potential liability under the state's dram shop laws.