Does your dog listen only in a controlled environment like in the house or yard, but when out enjoying a little freedom he/she seems to suffer from "selective hearing"?

There is a big difference between your dog listening to you because he has to and listening to you because he wants to. That difference is leadership control. The first brings out an attitude of grudging reluctance, the latter an attitude of desire to please.

For many people, lack of leadership control is where most of their problems originate. Without having the dog recognize you as the Alpha, there will be an endless battle of wills, a constant source of irritation and frustration for yourself, not to mention the constant confusion for the dog.

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Don't allow behaviour as a pup that will become a problem as an adult.

Begin with the end in mind. If you are unsure about a behaviour, then picture your pup doing the same thing as an adult. Is it still cute? Sassy, dominant behaviour as a pup develops into a strong willed, dominant and arrogant adult. BUT be cautious of being too dominant towards a pup.

Dogs will try to set their own rules whenever new situations arrive (new sheep, new field, etc.)

You have to start small, establish rules and then keep re-establishing them where new situations arrive, until the dog just expects and accepts the same rules. Unit he's well grounded, don't just turn him out and expect him to be as he was at home.

Beware of using food as a reward.

A dog will repeat rewarded behaviour. Consistent handling that allows the dog to find the rewarded response will build the right habits in the dog. Use the pleasure in your voice as the reward. Using food as a reward will build self-motivated behaviour in your dog. In his mind, he's giving you the right cue and you dispense a treat. You are his personal, portable vending machine! What happens if he doesn't want a treat more than something else on his mind? He is conditioned to be self centered.

Training should not be a grievous chore.

Training should be a time of reaching and communicating to the dog that you love and care for. If you find it to be a time of stress and frustration, then you need to stop and re-assess how and what you are doing.