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 Pennsylvania, the Dram Shop Law holds that any licensed establishment that sells alcohol, such as bars, restaurants, or liquor stores, can be held legally responsible if they serve alcohol to a visibly intoxicated person or to a minor, and that person subsequently causes injury or property damage. This means that if an obviously intoxicated individual is served alcohol and then causes harm, such as through a car accident or a physical altercation, the establishment that provided the alcohol can be sued for damages. The relevant statute in Pennsylvania is the Liquor Code, specifically 47 P.S. § 4-493, which outlines the penalties for violations of this provision. It is important for establishments that serve alcohol to be aware of the signs of intoxication and to refuse service to those who appear to be visibly intoxicated to avoid potential liability under the Dram Shop Law.