How would you react to an E2 who "smart mouths" you in formation?

It would be platoon Attention about face, smart mouth aboutbface. Bawm, platoon about face

I would call the Security Police and have him put in jail.

Mountain climbers

First of all if this individual does not want to live by the rules and take lawful orders, then he must be punished. If he continues to be a problem, then there is always a means of discharging this individual. Being able to have the young man talk to the leading Seaman if he was in the Navy, would be another way of handling it, however, they do not let you do that anymore. Too much PC right now going on.

Smoke him.

nip it quickly with swiftness

Straight up just burn him. You cant really do much else now without yourself getting fucked over in the end. So i would just push paper work on him.

Dump his stow box, demand 50 push-ups. Then send to kitchen for KP Duty.

wall to wall!

Sometimes there are circumstances that cause an individual to do said things. But that is no excuse, he should have discussed that with someone rather than being disrespectful. I always say go by the book, so that you cover your own ass, and should it get physical only as last resort. Saying this because my father was a Drill Instructor for 4 years, and i heard the stories on how things were handled, and he NEVER got physically accosted any of his troops. He however was in the presence of a few that had to be "taught a lesson" old school style, once instance a new recruit challenged a senior drill, in the presence of my dad, who was the ranking senior drill, and because the boys daddy was Brigadier Gen, he thought he was above the regulations, and was a pretty good size boy, and when felt froggy and leaped, the drill , who was a big ole boy also, knocked the wind out of his sail, when the recruit said to my father, who had his backed turned looking out the window, you saw that did you not drill sgt, my father said i saw nothing. long story short, the boy called his daddy, and daddy said straighten up and get your shit together,my father said he became the best recruit EVER.