An offensive term directed toward "white" people. Usually used by racist "black" people, but sometimes used by morons against their own race. People who use this word usually use other word stereotypes and/or have bad grammer. Often brushed off one's shoulder if called the name. Usually dished out by people who can't handle being called a racist term themself.
racist: Yo homies look at dat cracker walkin' on our "turf"! Lets jump him/her!
victim: You don't own this place and you have no right to call me racist terms!
racist: Hey! You racist fo yellin' at a black person! This cracker deserves to die for being right and not going mah way!
victim: Sorry, what was that you said? I speak english not moron.
moron1: "Outta mah way cracker, you be in mah way."
moron2: "You shut yo mouth nigger!"
moronic-teacher-passing-by: "Moron2! get your ass down to the principal's office NOW!"
moron2: "But he call me a cracker!"
moronic-teacher: "moron1 don't call names."