What is Dram Shop Liability for Serving Alcohol?

Under Arkansas dram shop liability law, bars and other establishments can be held responsible for drunk driving accidents in some cases. This is known as “dram shop liability.” When Arkansas’s dram shop law applies, filing a claim against the establishment that is to blame for a serious or fatal accident can provide a key source of financial compensation for victims and their families. 

Dram shop liability laws vary by state. Some states hold bars and other establishments responsible in more situations than others. As a result, if you have questions about dram shop liability, it is important to make sure that you are focusing specifically on Arkansas law. 

Arkansas’s Dram Shop Law 

Arkansas’s law holds bars and other establishments responsible for drunk driving accidents in two specific situations. Section 16-126-103 of the law states:

“In cases where it has been proven that an alcoholic beverage retailer knowingly sold alcoholic beverages to a minor or sold under circumstances where such retailer reasonably should have known such purchaser was a minor, a civil jury may determine whether or not such knowing sale constituted the proximate cause of any injury to such minor, or to a third person, caused by such minor.”

Section 16-126-104 of the law states:

“In cases where it has been proven that an alcoholic beverage retailer knowingly sold alcoholic beverages to a person who was clearly intoxicated at the time of such sale or sold under circumstances where the retailer reasonably should have known the person was clearly intoxicated at the time of the sale, a civil jury may determine whether or not the sale constitutes a proximate cause of any subsequent injury to other persons.”

In other words, in order for dram shop liability to apply in Arkansas, a drunk driving accident must involve either: (i) a drunk driver is a minor; or, (ii) a drunk driver who was already “clearly intoxicated” when he or she was served. 

Drunk Driving Accidents Involving Minors 

Under Arkansas’s dram shop liability law, bars and other establishments can be held liable for serving alcohol to minors. The law applies when an establishment “knowingly” serves alcohol to a minor or “should have known” that it was serving a minor. As a result, ignoring the fact that a customer is underage and failing to check a customer’s ID can both expose establishments to liability for drunk driving accidents involving minors under Arkansas law.

Importantly, serving alcohol to a minor does not automatically make an establishment liable if the minor subsequently causes a drunk driving accident. Rather, it is up to the jury to determine whether serving the minor was a “proximate cause” of the accident. As a result, proving “proximate cause” is a key aspect of these cases—not only at trial, but also in settlement negotiations with the establishment’s insurance company. 

Drunk Driving Accidents Involving “Clearly Intoxicated” Drivers 

Bars and other establishments in Arkansas can also be held liable for serving “clearly intoxicated” customers who cause drunk driving accidents. The law states that a person is clearly intoxicated if he or she is, “so obviously intoxicated to the extent that, at the time of . . . sale, he or she presents a clear danger to others.”

Thus, in addition to the question of “proximate cause,” cases involving this section of Arkansas’s dram shop liability law also involve the question of exactly how drunk the driver was (or appeared to be) when the establishment in question sold him or her alcohol. Some examples of evidence that can be used to show an establishment knew (or should have known) that a customer was clearly intoxicated include:

• The number of drinks the establishment served the driver
• The driver’s physical appearance (as confirmed by witnesses or security camera footage) 
• The driver’s statements to the bartender, server, or cashier 
• The driver’s slurred speech, stumbling, or other clear evidence of intoxication 
• A bartender, server, or cashier’s statements regarding the driver’s apparent intoxication

Again, these are just examples. Regardless of the circumstances involved, establishing dram shop liability for a drunk driving accident in Arkansas requires a prompt and thorough investigation. With this in mind, if you are coping with serious accident-related injuries or the loss of a loved one, you should talk to a lawyer as soon as possible.

Understanding Dram Shop Laws

Dram shop or dramshop is a legal term in the United States referring to a bar, tavern or the like where alcoholic beverages are sold. Traditionally, it referred to a shop where spirits were sold by the dram, a small unit of liquid.

Arkansas Retailer’s Liability

When lawyers refer to dram shop liability in Arkansas, they are talking about liability imposed by statute to commercial establishments that sell alcoholic beverages. The dram shop law in Arkansas provides, “In cases where it has been proven that an alcoholic beverage retailer knowingly sold alcoholic beverages to a person who was clearly intoxicated at the time of such sale, or sold under circumstances where the retailer reasonably should have known the person was clearly intoxicated at the time of the sale, a civil jury may determine whether or not the sale constitutes a proximate cause of any subsequent injury to other persons.” Ark. Code Ann. 16-126-106.

Arkansas Social Host Liability

Under that same law, Arkansas, unlike many other states, only holds a social host liable if alcoholic beverages are served to an underage person. The Arkansas law provides, “In no event will the act of providing alcoholic beverages to a person who can lawfully possess them by a social host, or other person who does not hold an alcoholic beverage vendor’s permit, constitute a proximate cause of any personal injuries or property damages which may be subsequently caused by an individual consuming any alcoholic beverages so provided.”

Missouri Dram Shop Liability

Missouri has also addressed the issue of liability for serving alcoholic beverages by statute. Mo. Ann. 537.503 imposes limited liability against licensed vendors of alcohol, by the drink, for consumption on the premises. In Missouri, a cause of action exists only if (1) the vendor is convicted of or receives a suspended sentence for selling alcohol to a minor or obviously intoxicated person, and (2) that sale is the proximate cause of the injury or death sustained by that person.

Oklahoma Dram Shop Liability

Unlike Missouri there is no statute in Oklahoma addressing dram shop liability. Oklahoma has imposed liability by common-law. In Oklahoma, a person who furnishes liquor may be liable for damages for serving an obviously intoxicated person from which it can be determined that an unreasonable risk of harm to others was created by the impaired ability to operate a motor vehicle.

Texas Dram Shop Liability

Texas imposes liability by statute for providing, selling, or serving an alcoholic beverage to an obviously intoxicated person to the extent that he presented a clear danger to himself and others and if the intoxication is the proximate cause of the injury. Tex. Alco. Bev. Code Ann. 2.02.

Mississippi Dram Shop Liability

Mississippi has also addressed dram shop liability by statute. Miss. Code Ann. 67-3-73 limits liability to those cases in which licensed alcohol vendors furnish alcohol to visibly intoxicated persons, or in cases where a person causes the consumption of alcoholic beverages by force, or false representations that the beverage contains no alcohol.

Contact a Drunk Driving Injury Lawyer for Free 

Were you injured in a drunk driving accident in Arkansas? If so, you need to know your rights. You may be entitled to compensation for your medical bills, lost wages, and more. The experienced attorneys at Oliver Law Firm have helped the wrongfully injured across Arkansas for years. We have helped our clients recover the maximum compensation for their injuries and we can help you too.

Contact Oliver Law Firm today online or at (479) 202-5200 today for a FREE case evaluation. Our drunk driving accident lawyers welcome clients from We help clients across Arkansas and throughout the United States from our office in Rogers, AR.