Laws & Liability
What is the general purpose of dram shop laws?
- ATo limit the number of drinks a guest may purchase in a single visit
- BTo set the minimum price an establishment may charge for a drink
- CTo require bars to close by a fixed hour every night
- DTo hold an establishment or server legally liable for harm caused by a guest they unlawfully served alcohol toCorrect
Why: Dram shop laws allow an injured third party to hold the seller of alcohol responsible when that seller unlawfully served an intoxicated or underage person who later caused harm. The exact rules and thresholds vary by state, but the core idea is shared server and establishment liability.
