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A dram shop (or dramshop) is a bar, tavern or similar commercial establishment where alcoholic beverages are sold. Traditionally, it is a shop where spirits were sold by the dram, a small unit of liquid.
Dram shop liability refers to the body of law governing the liability of taverns, liquor stores, and other commercial establishments that serve alcoholic beverages. Within the United States, laws that impose potential liability upon businesses that sell alcohol for injuries caused by their patrons are usually called dram shop laws or dram shop acts.
Generally, dram shop laws establish the liability of establishments arising out of the sale of alcohol to visibly intoxicated persons or minors who subsequently cause death or injury to third parties (those not having a relationship to the business that sold the alcohol) as a result of alcohol-related car crashes and other accidents.
The laws are intended to protect the general public from the hazards of serving alcohol to minors and intoxicated patrons. Groups such as Mothers Against Drunk Driving (MADD) have advocated for the enforcement and enactment of dram shop laws across the United States as well as in the United Kingdom, Canada, New Zealand and Australia. The earliest dram shop laws date from the 19th-century temperance movement.