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 South Carolina, dram shop laws are in place to hold alcohol-serving establishments like bars, restaurants, and liquor stores accountable if they serve alcohol to an obviously intoxicated person who then causes injury or property damage. These laws are designed to encourage responsible serving practices and provide a legal remedy for those harmed by the actions of an intoxicated individual. Under South Carolina law, an establishment can be found liable if it is proven that the staff continued to serve alcohol to a person who was visibly intoxicated, and that person's intoxication was a proximate cause of the damages or injuries incurred. It is important for establishments that serve alcohol to be aware of these laws and to train their staff accordingly to avoid over-serving patrons and to minimize the risk of liability.