Most states have a dram shop law to deter providers of alcoholic beverages (servers, liquor stores, bars, restaurants) who sell or serve alcoholic beverages under authority of a license or permit from selling or serving alcoholic beverages to obviously intoxicated individuals.
These laws generally eliminate any liability of servers, liquor stores, bars, and restaurants when a person to whom they sell or serve alcohol causes personal injury or property damage—whether in an automobile accident, a fight, or other incident—unless the person to whom they sell or serve alcohol is obviously intoxicated.
Laws regarding dram shop liability vary from state to state and are usually located in a state’s statutes.
In Ohio, dram shop laws are codified under Ohio Revised Code Section 4399.18, which allows for legal action against permit holders, such as bars, restaurants, and liquor stores, if they sell alcohol to an already intoxicated person or a minor, and that person subsequently causes injury, death, or property damage. However, the liability is not automatic; the injured party must prove that the establishment knowingly sold alcohol to an intoxicated person or a minor and that the sale directly resulted in the person's intoxication and the harm caused. Ohio's dram shop law is more limited compared to some other states, as it does not extend liability to social hosts who provide alcohol at private functions, unless the alcohol is provided to a minor.