Dram Shop Rule Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Dram Shop Rule, written in plain English, along with examples of how it is used.

What is Dram Shop Rule?

n. A statute that holds a business strictly liable to anyone injured by a drunken patron or guest if the business sells an alcoholic drink or a host serves liquor to someone who is obviously intoxicated. California recently banned this strict liability. Since there is always an intervening cause, it is often difficult to prove that the liquor bought or served caused the specific accident.