those kids are going to walk all over her when they're older. future SCs, probably.
Sounds like the kid already does. Parents like this need a spine. It drives me nuts when I'm at a restaurant and some kid is screeching that high pitched "EEEEEEEEEEEEEEEEEEE!!!" scream some kids do when annoyed/happy/miffed/who knows what, and the parent does nothing to stop it, or worse, laughs and goes into the "aww, how cute" routine.
Hell, if that were me, I'd have been slapped on the wrist and/or butt, and grounded before I had even finished emptying those buckets for disrespecting an adult...but that's what happens when you're raised by 2 US Army officers... :-D