All male puppies testicles are undescended. Upon examination the vet should be able to feel them, but they haven't descended yet. In a retriever it can take up to 6 months of age before they drop.
If the breeder has registered her kennel with AKC...it is expected any puppies produced will keep the name so her kennel receives the recognition should any future off spring be shown. Now that I think of that....this breeder's kennel must not be registered...because if it were...your friend wouldn't be allowed to change the dog's name without her permission.
She sold the dog as a breeding prospect, if his testicles won't descend...he would not be considered for breeding. The breeder offered a full refund...I'm not sure what else your friend expected.
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