It's a bit close, yes, but it happens. So long as the sire was an exceptional animal, it may not be such an issue. You perhaps want to select bulls with none of the names from that line

.
Personally I prefer to see a repeat in one line than the same name on different sides of the pedigree, but I think we probably all have our own opinions about this! And in general, my feeling is that dad-to-daughter is either accidental and/or indicative of a very small breeder, whereas grandpa-to-granddaughter is more likely to be intentional line breeding (as it used to be defined), to reinforce the characteristics of an excellent individual.
If you are looking to produce meat it's not a problem, I would say, but of course if you are planning on selling breeding stock it could be more of an issue for you, if others dislike it as much as you do.
And yes, I think the breeder should have disclosed this to you before the sale, especially if you are planning to produce breeding stock and told them so.