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 New Mexico, dram shop laws are in place to hold alcohol providers such as servers, liquor stores, bars, and restaurants accountable if they sell or serve alcohol to individuals who are obviously intoxicated. Under the New Mexico Liquor Liability Act (NMSA 1978, Sections 41-11-1 to 41-11-5), these establishments can be found liable for damages if they provide alcohol to an obviously intoxicated person or a minor, and that individual subsequently causes injury or property damage, such as in a car accident or a physical altercation. The law aims to encourage responsible serving practices and provides a legal recourse for victims seeking compensation for injuries caused by intoxicated individuals. It is important for establishments serving alcohol to be aware of these regulations and to train their staff accordingly to avoid potential liability.