Both my daughter and SIL speak about E's behaviour as if it's an 'issue' with her, and something they haven't been able to remedy. I think it all began because my daughter went back to work before they had properly bonded. I know that my daughter had never felt very confident when E was tiny, and to be honest, I really think she was glad to hand over the reins to others when she went back to work. Whenever possible her MIL would be asked to have E and to a certain extent, I think that's been part of the problem. Lots of the time people have walked on eggshells around her. She was referred to a child psychologist when she was about 8 because of her angry outbursts, and 'time out' was advised when she 'kicked off' (literally). This 'time out' took the form of putting her in her room, and not allowing her out until she quietened. This sounds quite awful, and it didn't really work, because, short of holding the door shut, she would burst out of the room again, and continue her tirade!
When she was small, and my daughter was trying to take her along to the childminder, she wouldn't let my daughter put her own shoes on. (This tells me that she didn't want my daughter to go work/take her to the childminder).
Over the years, E has really ruled the roost in the house. She decides what should be watched on television (and obviously those programmes are all rubbishy American teenage ones), but her parents put up with it and don't argue with her about it. What bothers me, also, is that E doesn't like to see (or suspect) any closeness between her parents. She tries to come between them all the time, and doesn't like to think of them even talking when she's not there.
Whenever I've had E to stay (they only live about 10 minutes away), I haven't had any difficulties with her behaviour. She knows what I say 'goes', - and that's final. And when she has spoken to me in a rude manner, I've immediately 'snipped' her for it, saying, "I beg your pardon, E?" Perhaps that's why she doesn't stay that often! When my daughter does talk to me about it, which she does often, I'm very careful not to actually advise, but it's not easy when your daughter tells you that her own daughter dislikes her intensely.