The term describes a legal concept referring to establishments that sell alcoholic beverages. It originates from the historical practice of measuring spirits in units called “drams.” In essence, this refers to bars, taverns, restaurants, and other businesses licensed to serve alcohol. If such an establishment negligently serves alcohol to a visibly intoxicated person who subsequently causes injury or damage to themselves or others, the establishment may be held liable under specific laws.
The significance of these regulations lies in promoting responsible alcohol service and mitigating alcohol-related harm. Historically, the common law held individuals solely responsible for their actions, even under the influence. However, these statutes recognize the potential for establishments to contribute to harm by over-serving patrons. The benefit of these laws is that they incentivize establishments to carefully monitor alcohol consumption and prevent intoxication, potentially reducing instances of drunk driving, assaults, and other alcohol-related incidents. This ultimately contributes to safer communities.