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

Counseling, referral up the chain, and, unless we collectively decide they are worth redemption, wave as he or she goes out the gate. Not something we tolerated in the AF since we had no particular need for anyone requiring discipline imposed on them. Individuals needed to be self motivated, trustworthy, and reliable. I'd have taken the time to find out who let him graduate basic and let them know they failed that individual and the Air Force letting that get by them. When I trained and certified a tech and put them on standby to support critical navigational equipment after hours they were directly responsible for insuring aircraft got the guidance necessary to bring a billion dollar aircraft, millions of dollars worth of cargo, and possibly hundreds of Soldiers or Marines to a safe landing. Especially on those a dark and stormy nights.

Here Private, let me help you to your feet.
Oh wait - those days are long past. Cut right to the chase; dismiss the others and place this private on report for disrespect and disobeying a lawful order. Why screw around?

STAND FAST PVT. SQUAD DISMISSED !! COME WITH ME PVT ( TO THE WOODS)

PRIVATE SMART ASS STAND FAST, PLATOON DISMISSED !!! PRIVATE COME WITH ME. (TO THE WOODS) !!!

You stop it right away, after a quick come to Jesus in front of all, you have the turd fallout with his Team Leader to your office. You finish up PLT business and have your Senior E-6 take over. Once at your office you speak to the Team Leader first about Private Turd's attitude and what you you expect and the assignment they were given. Give TM LDR a suspense on the work required and then if not completed by PVT Turd, plus a counseling to Turd and one for the TM LDR. If not completed then you push for extra duties and if that fails restrictions then Article 15.

One the group is dismissed. I'd take the E-2 to the office for a counseling session.

Depends if the platoon leader is a snot bag. I wouldn’t care and have ripped into mine a few times if they are wrong. On the other hand that snot bag is in charge for a reason and 99% of the time I would agree with the snot bag.

You dress him down on the spot, no explanations needed.

Since I was in the Coast Guard..
E-2 Seaman Apprentice, would be given the options of doing what he/she was told, be restricted to the Ship or Base or finding themselves standing before the Captain or even worse, let the crew in y section know they are being restricted to the base or ship until Seaman Apprentice asswipe, does what is told or expected of him or she...

I was lucky enough to have that experience first hand and I was only a Seaman E-3 at the time..
I was in charge of a duty section and an ass clown refused to work, period...
My Ship was home ported in Guam where the genius decided to go AWOL...
Guam police found the idiots ID card in a planter at the International Airport..
they walked through the airport terminals and found him..
the police contacted the Coast Guard Port Security and he was returned to back to the ship..
the CO gave him 2 months in the Marine Brigg where he cried and promised to be a good little boy.
after 2 weeks of Marines giving him a what for, the CO had him released, felt sorry for him and thinking he would keep his word...
once released he still refused to work.. he lied..
we were going to go to the Philippines in a week and some started talking about having him done in once there..
cost of life, back then $5
I let him know what was going on, he asked how much have they raised..
I said $5, he laughed..
I said, that is what it would take and I donated the first $5..
he stopped laughing..
2 days later he was gone..
apparently he called mommy and daddy in Washington, told them his life was threatened and need to come home..
his parents came up with a BS excuse and he was flown out for an emergency in the family with the help of the Red Cross...
after we got back to Guam the moron was suppose to be there when we arrived, he went AWOL in Washington..
Recruiters went after him, picked him up and couldnt stand the guy..
they put him on the first plane headed towards Guam, it was Hawaii..
once in Hawaii he was met with 2 others and they placed him on a MAC flight to Guam..
once back the CO gave him a full 2 months in the Brigg and reduction in pay..
I had the luxury of picking him up at the Marine hotel hell..
in doing so I was given 14 rounds of Ammo, Colt 1911, set of handcuff's and baton.
when I picked him up in front of the Marines i gave him the option of going handcuffed or not..
he chose not to be handcuffed..
I said good but if you decide to take off I will shoot you...
the look on his face was priceless and the ones the Marines gave was with joy, they couldn't stand the guy either..
Also,i told him another collection has been taken up..
if you wont work or do as your told, you know whats coming...
I lied..
he straightened out his act, he did what he was told...
he had to, we were headed for Vietnam...

Tell that sorry E2 to stand by after formation with the senior E4. In the army, the E4 mafia can be a very powerful tool for leadership when they're on your side... lol. I personally don't like the paperwork route, but will bring that along if the smoke session doesn't resolve the issue. Bringing the E4 along does a number of things. 1: you show him hands on how to handle such issues for when he gets promoted. 2, its an inconvenience to him which will be fuel for the mafia to keep the underlings in line. 3. It covers your ass if the E2 tries to come after you legally. As far as the smoking goes, you gotta play that depending on MET-TC. you can get away with a lot more in some units than others. In my first unit I was counseled after making an E2 do 50 burpees because he was late for the 4th conescutive time to formation. my current unit doesn't care what you do for how long as long as the mission, health and well being of the soldier aren't put at risk.