Rule

Question
When a batted ball hits a runner is the ball always declared dead and the hit runner is out and the batter automatically awarded 1st? Our situation was after the ball struck the runner the 2nd baseman fielded the ball and threw the batter out at first. The umpire awarded the batter first base.

Answer
Chet,

The runner is not always out when hit by a batted ball. In general, if the ball has gone past an infielder (except for the pitcher) AND no other infielder has a chance to make a play on the ball, the runner would not be out and the ball would be live.

In your situation, the ball would have been dead immediately upon hitting the runner. The runner would be called out, the batter would be awarded first base, and all other runners would return to their base they were on at the time of the pitch (unless forced to the next base by the batter being awarded first base).