What does the term "Dram Shop" refer to?

The term "Dram Shop" refers to a bar or retailer that sells alcoholic beverages. This concept originates from the historical use of the word "dram," which refers to a small quantity of liquid, often used in the context of alcohol. Dram shops are establishments licensed to sell alcoholic drinks for consumption on or off the premises.

Understanding this definition is essential for anyone involved in the sale of alcohol, as dram shop laws in many states govern the responsibilities of these establishments regarding serving alcohol, ensuring they do not serve minors or intoxicated individuals, and minimizing liability related to alcohol-related incidents. This all emphasizes the importance of the role such establishments play in the regulation and responsible service of alcohol.