Legal Definitions - civil-damage law

Civil-damage law, also known as the dram-shop act, is a statute that allows a person who has been injured by an intoxicated customer to recover damages from the commercial seller of alcoholic beverages. This law is designed to hold businesses accountable for serving alcohol to customers who are visibly intoxicated or underage.

For example, if a person gets into a car accident with a drunk driver who was served alcohol at a bar, the injured person may be able to sue the bar for damages under the dram-shop act. The bar could be held liable for serving alcohol to the drunk driver, which contributed to the accident.

The dram-shop act is not a federal law, but rather a state law. Each state has its own version of the law, with different requirements and limitations. Some states have abolished the dram-shop act altogether, while others have expanded it to include liability for social hosts who serve alcohol at private parties.