"It's illegal to serve intoxicated individuals"
It is illegal to serve individuals who are visibly intoxicated in all but four states. In most states it is a criminal violation against the server, although servers are almost never prosecuted.
If caught, the establishment incurs an administrative violation, which could mean suspension or revocation of the business' liquor license. This is almost never enforced as well because someone needs to be sent into bars to watch people being served. In short, if there is zero enforcement, then there is going to be zero compliance.
A recent study completed in Michigan concluded that when police officers did go to enforce the laws, the threat of enforcement alone increased the refusal rate to serve intoxicated patrons from 15 to 55 percent. In order for such laws to be effective, the liquor control commission has to be willing to take action if police officers are willing to enforce the statutes.
In general, far more citations are given for serving individuals who are underage than for serving intoxicated individuals.
Enforcement of these laws offers a highly effective way in curbing drunk driving because a large majority of people in bars drive to get there and because the supply of alcohol is in the hands of sober people.
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