I just have a question. i do agree that the children should work it out, as long as it does not turn physical. however, if the child (by the sounds of it this child is clueless about being nice and sharing) is not able to understand any form of being nice to their friends and willing to share, why don't you remove them from the situation so that they understand that it is wrong?

Sorry I am typing fast and hope that makes sense....lol

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