Definition of "Liquor liability laws"
Legislation that makes an establishment and/or individual selling liquor responsible for injuries caused by its customers to third parties. The best known law governing dispensation of liquor on premises is the dram shop law. For example, an individual is served liquor at an establishment and becomes intoxicated. On his way home he or she causes an accident, injuring another party. The injured third party can bring a liability suit against the establishment that dispensed the liquor for injuries suffered.
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