dram shop rule

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dram shop rule

n. a statute (Dram Shop Act) or case law in 38 states which makes a business which sells alcoholic drinks or a host who serves liquor to a drinker who is obviously intoxicated or close to it, strictly liable to anyone injured by the drunken patron or guest. To the contrary, California recently passed legislation specifically banning such strict liability. It is often hard to prove that the liquor bought or served was the specific cause of an accident (such as an automobile crash while driving home), since there is always an intervening cause, namely, the drunk.

References in periodicals archive ?
Missouri's dram shop law only allows for recovery when the establishment knew (or should have known) the customer was visibly intoxicated and continued to serve the customer intoxicating liquor.
Judge puts $1M settlement from dram shop suit into court registry.
4 percent was found in areas with increased dram shop liability.
The trial judge dismissed the family's claim that the bar had violated New Jersey's Dram Shop Act because it did not serve Nesbitt any alcohol.
Still, dram shop laws differ among the states, making insurance writing a challenge, Durnal said.
ASM argued that this evidence went beyond the scope of the dram shop act and was in fact inadmissible habit evidence that was unfairly prejudicial.
The presence of an open container law leads to lower excise taxes on beer (substitutability), but dram shop laws by statute lead to higher beer taxes (complementarity).
Only time will tell what will happen with dram shop laws in Texas, but Rep.
Burns has extensive experience litigating catastrophic loss personal injury, toxic tort and dram shop cases in federal and state courts throughout the nation.
The sudden universality of dram shop statutes, rising insurance premiums, and virtually unlimited award "limits.
However, some states allow only innocent third parties, such as those injured by a driver who became intoxicated at the casino, to bring dram shop claims.
Pennsylvania's liquor liability laws -- known as Dram Shop legislation -- hold bar owners civilly responsible for serving alcohol to underage or visibly intoxicated patrons.