It sounds like this child knows for a fact he can run the household and his parents by misbehaving and they are giving in to him rather than parenting him. It's really difficult for a parent to learn to take control of their child and say NO and mean it and stick to it. Parents are really busy people and feel so guilty because they have to drop their child off at daycare and go make a living. Children are really clever little people who figure this out and manipulate their parents like crazy. It is our job as a parent NOT to let that happen.
We want to raise good people, not manipulative, spoiled, misbehaved people. You don't want a toddler who can manipulate you but trust me, you REALLY don't want a teenager who can manipulate you. How do I know all this? BEEN THERE DONE THAT!!!!
Now I can give good advice to my own children who are now parents and to my daycare clients that it takes time and effort to put a stop to this type of behaviour in their children and put their foot down. Of course the child will rebel if they have been used to getting their way, but in the long run it is for everybody's benefit and the household will not be a dysfuncional mess!