The Dram Shop Law states that businesses that sell liquor to a person who is obviously intoxicated can be held liable for losses that person causes within a certain amount of time. Restaurants and bars have to buy liability insurance to cover this risk.
The Dram Shop Law is common in the United States; however, not every state has it since it can be difficult to prove that liquor served at a particular establishment is to blame for a specific loss. For example, a person could have some drinks at a bar, then take a few shots in their car before driving off and causing an accident.
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