Update:
First, I want to thank everyone for all of your insight, excellent advice and sympathy! Thank you!
I finally got to Joann's and surprisingly it went very well. I spoke with the manager- showed her my blocks, the ripped fabric, and the yardage I had left over; the next thing I knew we were at the cutting table measuring the fabric I had leftover. She acknowledged that it was defective and offered to exchange it but I declined and requested store credit instead- which she agreed to. I couldn't believe how easily it all went- kudos to Joanns. I'm just happy not to be stuck with 4+ yards of useless fabric. Now I need to make some decisions about what I'm going to use for the background of my New Jane quilt....back to the drawing board! I will also try the stabilizer that everyone mentioned and make a small wallhanging out of the block I have finished so far.
Again...thank you everyone for your kind words of support & expertise- another reason I love the Quilting Board!