Dram Shop Rule Legal Meaning and Definition

Here is a simplified definition of the legal term Dram Shop Rule.

Dram Shop Rule (noun): A law which states that any business or host that sells or serves alcohol to a clearly intoxicated person can be held completely responsible if that person causes injury due to their drunkenness. This rule can vary in enforcement or even be banned in certain places. Proving this liability can be difficult, as it often requires demonstrating that the alcohol sold or served directly resulted in a specific incident.