Blatant racism in school, no punishment, need advice?

Poor Adam! It's so sad that he has to experience this kind of ignorance and hatred at such a young age. That sort of thing will stay with him for the rest of his life. The teacher should've taken it seriously. Karl's parents should be notified and educated about how their son should treat others. I wouldn't let it go, I would go tell the principal what happened and make sure he/she knows what the teacher did. The teacher obviously needs some additional training on handling these situations. At least the other kids knew it was wrong! I hope Adam is doing well.