The Inn of the Sleeping Bull is the oldest establishment of New Sosaria. Legend says that the land was once owned by a mage, who hated all people and created a stone bull to kill trespassers. A local noble's son claimed he could defeat the bull, and the mage welcomed him to try, saying death would be the reward for failure. When he asked what success would be rewarded by, the mage wagered his land. That night, the boy stole the ring from the bull's nose, turning it back into inanimate stone. The village was named for the huge stone bull that stood in the village square. But whatever happened to this legendary statue later, no one knows.
Silverpate built the Inn of the Sleeping Bull. It was inherited by his son Donal, and then by his son Angus. At the time of the Avatar's arrival, it's being run by Angus' wife, Devra. The lower section of the inn has secret tunnels created by Silverpate, with the aid of Erstam, to hide his treasure.
The Inn of the Sleeping Bull was at the end destroyed by the Wantonness Bane, killing all inhabitants.
While Ultima VII Part Two: Serpent Isle presents us a plausible and interesting story that explains why the inn is named this way, the real background might be a bit more mundane: in Ultima I, a town called "Bulldozer" is found where the Inn is now. The writers of U7SI may have wanted to apply some very creative retroactive continuity to explain the sometimes funny place names in Ultima I...
There is a stone statue in the cellar of the inn which could possibly be the stone bull in the legend, but it rather looks like a big cat. This statue looks same as the cat statues in Claw; little explanation is given for the existence of Claw in first place, and why this statue can be found in the cellar here.
The currency of the Inn of the Sleeping Bull are Gold Coins (the only place on Serpent Isle, where they are accepted).
The upstairs rooms are all locked; all doors can be picked except Room 3. If you buy a room from the innkeep, you get the key for Room 3. There are switches in the closets of all the rooms which allows the player to be teleported back and forth to Silverpate's hidden caves under the inn, providing the teleporters have been reactivated first.