Does the one default domain policy apply to child domains from the parent domain?

I don't remember details, but the default domain policy is special. Does it not trickle down from parent domain to child domains? Where are some links to these rules anyway?
cajxAsked:
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CrashDummy_MSCommented:
Default domain policy should not apply itself to child domains.

http://technet.microsoft.com/en-us/library/cc786768.aspx
http://technet.microsoft.com/en-us/library/cc757050.aspx

If you really wanted to apply a GPO to other domains you could apply the GPO to the site, but I believe it is not recommended.
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