Dram Shop Rule

Business, Legal & Accounting Glossary

Definition: Dram Shop Rule




What is the dictionary definition of Dram Shop Rule?

Dictionary Definition


n. a statute (Dram Shop Act) or case law in 38 states which makes a business which sells alcoholic drinks or a host who serves liquor to a drinker who is obviously intoxicated or close to it, strictly liable to anyone injured by the drunken patron or guest. To the contrary, California recently passed legislation specifically banning such strict liability. It is often hard to prove that the liquor bought or served was the specific cause of an accident (such as an automobile crash while driving home), since there is always an intervening cause, namely, the drunk.


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Dram Shop Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 22, 2021 https://payrollheaven.com/define/dram-shop-rule/.
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Dram Shop Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/dram-shop-rule/ (accessed: September 22, 2021).
American Psychological Association (APA):
Dram Shop Rule. PayrollHeaven.com. Retrieved September 22, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/dram-shop-rule/

Definition Sources


Definitions for Dram Shop Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 27th April, 2020 | 0 Views.