INST WITH SPI ABOARD PRACTICING TOUCH-AND-GO LNDGS. SECOND ACFT TAKES OFF AT SAME TIME AND PARALLELS THEIR FLT PATH 45 FT HORIZLY.

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A STUDENT AND I WERE PRACTICING SHORT FIELD TKOF AND LNDGS TO A FULL STOP. WE ANNOUNCED OUR INTENTIONS ON EACH LEG. AFTER TURNING FINAL ON OUR THIRD APCH AN ACFT APPEARED TO BE TAKING THE RWY. I MADE A SECOND ANNOUNCEMENT ON FINAL STATING WE WERE ON SHORT FINAL FOR RWY 16 TO A FULL STOP. THE ACFT STOPPED; BUT WAS PARTIALLY OVER THE HOLD LINE. MY STUDENT LANDED TO A FULL STOP AND THEN BEGAN HIS TKOF. I TURNED AROUND TO CHK THE OTHER ACFT AND REALIZED HE WAS ROLLING DOWN THE RWY RIGHT BEHIND US. I ASKED HIM WHAT HE WAS DOING AND REMINDED HIM IT WAS UNSAFE PRACTICE TO HAVE 2 ACFT ACTIVE ON THE RWY AT THE SAME TIME. HE REPLIED THAT IT WAS NO PROBLEM AND THAT HE HAD US IN SIGHT. AS WE TOOK OFF; HE ALSO ROTATED AND FLEW PARALLEL TO OUR R. WE TURNED XWIND AND HE TURNED XWIND. ON DOWNWIND HE TURNED DOWNWIND OVER THE TOP OF THE ARPT AND THEN HEADED W. ANOTHER ACFT IN THE PATTERN ANNOUNCED THAT HE OBSERVED THE INCIDENT AND WOULD BE A WITNESS TO ANY ACTION NECESSARY. AS MENTIONED ABOVE; I WAS TRAINING A STUDENT AND TRYING TO INSTILL SAFE FLYING PRACTICES EACH TIME WE FLY. SOME PEOPLE THINK RULES AND SAFETY DON'T APPLY IN AN UNCTLED ARPT.