What is dramshop liability?

Dramshop liability is a legal concept that applies to bars, restaurants, and other establishments that serve or sell alcoholic beverages. It states that these establishments can be held liable for damages or injuries caused by customers who purchase and consume their alcoholic drinks, as long as the seller knew, or should have known, that the buyer was likely to become intoxicated. In California, dram shop liability is made a part of the Alcoholic Beverage Control Act and is covered under Civil Code Section 1714. This code stipulates that any person who sells, furnishes, or gives away any alcoholic beverage is liable for any and all damages caused by an intoxicated person, provided that the seller knew or should have known that the drinker was visibly intoxicated. As a result, dramshop liability laws hold businesses accountable for any harm caused by their patrons. This includes physical harm caused by fights or accidents resulting from overconsumption of alcohol, as well as financial losses due to property damage and medical bills. Regulations governing dramshop liability vary by state, so it is important to research applicable laws before serving alcoholic beverages. Furthermore, businesses that serve alcohol should always practice responsible alcohol service and work to reduce the risk of harm to their customers and others.

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What is dramshop liability?

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