I think them offering another puppy, is admirable and typical/standard. I do not think they owe you any money. You bought a living, breathing, unpredictable, animal. If you adopted a human child that later in life came down with asthma, autism, etc...you can't try and get your adoption fees back....it's just life.
I'm learning that this "health guarantee" is a pretty american thing. You go to a breeder, they do their part of testing (health and temperament), nature does it's part...and you take a gamble (less or more depending on breeder's standards for their breeding stock). Once the pup lives in your home, as long as there isn't anything obvious from neglect/disease in that beginning week, the rest is your responsibility, imo.
I do not understand this "right" to money if the dog develops issues (especially when the breeder did everything THEY could with their breeding stock). Frankly, I don't think there is a right to a new puppy either, but I know a lot don't agree with me there. And I do believe an ethical/caring breeder would offer the puppy, but I don't think it's a RIGHT of the puppy buyer. If that makes sense.
Good luck, OP. Sorry you are going through this. Unfortunately, it's a risk we take in bringing any living thing into our responsibility/home.
ETA: Of course if there is a contract, those terms should be met (regardless of what I think "rights" should be)...which I'm guessing the replacement pup was the terms...
Last edited by DaniFani; 08-20-2014 at 08:44 PM.