Do you have a H.R. dept? That would be my first step. That sounds like a Hostile Environment to me, and no one has to work with that. The company can be held accountable for it.
You find another job. He's the owners son and he's not going to be fired or demoted and he's not going to change his ways.
You either tell his Dad, put up with it or look elsewhere.
UK
How do you go about reporting / dealing with a bad boss? The boss is the son of the owner and he bully's his staff and has certain rules for each staff where all rules should go for everyone he rips the staff and thinks he's better than everyone else and is a bully and if you try and answer back he'll call you different names and make you shut up. And advise would help :)
