She is legally liable for anything your "little darling" does on her property. If he gets hurt, if he gets into things...it's HER problem.
She has every RIGHT to yell at you for not controlling your kid!!!
My son was five and in her driveway. My husband and her husband were (he passed three years ago from colon cancer)childhood friends from a neighboring town. Where we live, is small town/rural NW NJ. She never had kids because she didn't want to ruin her figure (the truth, so help me!) C'mon dude get a grip!!!! What is your problem..............geesh.