Witaj!
1. - Yes, you should tell him. If you don't it'll keep on bugging you. You go to him and tell him what you feel. It may feel uncomfortable to you but if you do it you will feel way better. I can give you more advice if you need it.
2. - You shall tell them. If you don't you will not stop thinking about it and you'll tell it to them anyways. You could ask them what can you do to get a new one if you wish. They might get annoyed but it'll be ok.
Pozdrawiam - Antek :)