@drewdevault ① should be done and is the best scenario, at least I'd say it should be seen as learning the limits and politely acknowledging them, ② is off limits.
By the way I can easily see a scenario ③ where the person disagrees about it, even with being a bit rude, but doesn't creates much drama, like heat of the moment kind of thing, this is why ② to me is off limits.
(Plus a scenario ④ where the person says okay or even apologises but continues exactly as before)