I won't buy fabric that is torn.. PERIOD. I've seen it flaw fabric up to 2" on each side of the tear, which can short you up to 4" on a yard.. that kind of thing really mounts up.
I figure if I pay for 36", I should get 36".. it's not the shop's fault if the fabric is folded crooked, printed crooked, etc. I have some responsibility for checking it out before I buy it, and if I find this happens on a regular basis from some manufacturers I won't use their product. Plus I'll let them know about it.