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 Nebraska, dram shop laws are codified under the Nebraska Revised Statute 53-180. This statute holds that any licensed individual or establishment that sells or serves alcohol, such as bars, restaurants, and liquor stores, may be held liable for damages caused by an intoxicated person if it can be proven that the seller knew or should have known that the person was already intoxicated when they were served alcohol. However, unlike some states, Nebraska does not impose strict liability on establishments for the actions of their patrons. Instead, the person seeking damages must prove that the alcohol seller was negligent in serving an obviously intoxicated individual who then caused harm due to their intoxication. This means that for liability to be established, there must be evidence of negligence on the part of the server or establishment in recognizing and responding to signs of obvious intoxication.