*nods* Especially in a work environment (where, ironically, it's actually *officially* inappropriate!) it can be hard to think on your feet to find a way to say 'that's not ok.'

I think this is a "fool me once, shame on you" sort of thing -- it's not like it would occur to most people that you'd *need* to have an appropriate response to that level of stupidity in the workplace prepared. But if it were me, I think I'd now be planning how to handle it next time. (And/or trying to decide if I should report it to the person's boss or to HR. It may well be against company policy to allow hate speech.)