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 Oregon, dram shop laws are codified under ORS 471.565, which allows for a cause of action against alcohol servers who provide alcohol to visibly intoxicated individuals or minors, if the intoxication is a cause of damages, injuries, or death. This means that bars, restaurants, and other licensed establishments can be held liable if they serve alcohol to someone who is clearly intoxicated or under the legal drinking age, and that person goes on to injure someone or cause property damage. The law is intended to encourage responsible serving practices and to provide a legal remedy for those harmed by the negligent service of alcohol. It is important for establishments that serve alcohol to be aware of these regulations and to train their staff accordingly to avoid potential liability.