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ARTICLE · 22 MARCH 2022

Dram Shop Liability Is Not Just For Bars – Take Care When Serving Alcohol

Alcohol is a highly regulated substance. State governments often regulate who, what, when, where, and how alcohol can be produced, sold, purchased, and consumed.

United StatesLitigation, Mediation & Arbitration

Alcohol is a highly regulated substance. State governments often regulate who, what, when, where, and how alcohol can be produced, sold, purchased, and consumed. For example, many states have "dram shop" laws which regulate when a bar (also known as a "dram shop") may provide alcohol to a patron. Under Indiana's Dram Shop Act, a person who "furnishes" alcohol to another may be liable for damages (including injury or death) caused by the other person's intoxication if the furnisher had actual knowledge that the person who consumed the alcohol was visibly intoxicated when the alcohol was furnished. See Ind. Code § 7.1-5-10-15.5. The term "furnish" includes bartering, delivering, selling, exchanging, providing, or giving away alcohol.

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