I'm sorry that you were offended. I think it's a good idea to bring this matter to the attention of the manufacturer who may not have intended to cause offense but did so nonetheless. I don't know that there's a lawsuit here but you might want to consult with a civil rights attorney or call your local NAACP as the NAACP does have a legal department.
This response does not constitute legal advice and does not create an attorney-client relationship. Due to the complexity and ever-changing nature of the law and to the limitations of this forum, this information may not be adequate for your specific situation.
I agree with the other two lawyers. You might also consult with the Southern Poverty Law Center.
I doubt that there is a lawsuit in this case. Damages are very small if, indeed, there are damages at all. Spending for the cost of the doll and being deceived might fall under the Tennessee Consumer Protection Act, but the recovery will not justify the expenditure of time and money. Award of legal fees is discretionary with the court. Your best solution may be social action in contacting the manufacturer and then, if there is no satisfaction, the media. However, working with and through NAACP is likely to be more effective. Awareness raising and sensitivity to racial slurs might be a better goal.
These comments do not constitute legal advice. They are general comments on the circumstances presented, and may not be applicable to your situation. For legal advice on which you may rely consult your own lawyer.
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