2. When someone with a penis has to pee, they pull it out and use it. A person who is called a schmuck is similarly an instrument of another person, taken advantage of or manipulated.
3. Foreign to Yiddish culture, today you might see someone be called a schmuck if they're an asshole, due to English influence.
A term used to describe someone who is acting dumber than they are; not necessary derogative term, but when used in the right context it can convey the frustration that one is having during the communication process.