I read your other posts and the pictures don't really look that bad - I wouldn't call him 'defective' - he looks cute and while I can see the hair loss - he isn't bald like I envisioned.
What I wanted to say NICELY is if you had doubts - you should have walked away - but since you did buy him it's going to be hard to resolve this so, IF I were you - I'd just love him and hope for the best - he very well could grow that hair
as long as he's healthy then you're already ahead of the game

- We're seeing way too many sick puppies out there these days so a little hair problem in the bigger scope of things isn't really that bad.
I'm glad you posted this though - these breeders need to stand behind their puppies - a good breeder would work with you - the bad breeders care nothing about the puppies and just want your money and she sure sounds like a terrible breeder.