Your instructor's day job is important, and the more people management he does and the less technical hands-on labor, the better. Fishing off of the company pier is usually a strong indicator of a character flaw. Do not tolerate yourself or others being touched inappropriately. Intentional Injuries - You do not have to tolerate being injured or caused pain. If you are late for class or accidentally commit some offense, you should not be punished physically.
Some instructors employ rough free sparring to humble their students.
Physical punishment is the coward's way. Instructors with courage will simply discuss any issues they have with you, and failing to succeed, will ask you to leave. This is where those management skills are important. Surprise Fees and Fines - You should not be fined any fee that you were not notified of in advance. Do not tolerate an instructor that uses his position to pressure you into purchasing things.