California Dram Shop Liability is Limited, but not Absent
"Dram shop" laws impose liability on bars for damages that occur as a result of serving alcohol to someone visibly intoxicated. California's dram shop law is relatively limited in its application.

September 12, 2011 /24-7PressRelease/ -- California Dram Shop Liability is Limited, but not Absent

"Dram shop" laws are statutes that impose liability on bars and other retail establishments for damages that occur as a result of serving alcohol to someone who is visibly intoxicated. A dram is a British term for a small quantity of liquor, similar to a shot.

Most states have a dram shop law of one type or another. The purpose of these laws is to shift the burden of paying for damages to the parties that profit from the sale of alcohol, as well as to provide an incentive for alcohol retailers to refuse to serve intoxicated patrons.

Compared to similar laws in other states, California's dram shop law is relatively limited in its application to restaurant and bar owners.

Under California law, alcohol-related accidents are regarded as being caused by the consumption, rather than the sale, of alcohol. Therefore, an establishment that sells alcohol is generally not liable for damage that occurs as a result of that person's intoxication, even if the seller knew or should have known that the person was intoxicated at the time of sale.

There is, however, one major exception: An establishment that sells alcohol to a minor who is visibly intoxicated is liable for any damage that occurs as a result of the minor's intoxication.

California business law attorneys say restaurant and bar owners should bear in mind that, while civil liability is relatively limited under California's dram shop law, an establishment that sells alcohol to an obviously intoxicated person may still be subjected to criminal penalties. California law makes is a criminal misdemeanor to sell alcoholic beverages to a person who is visibly intoxicated.

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