Whether it mites, bites, mange, I would think the seller would have noticed that on a pup when handling him/her, and have it looked at and treated, before the pup left their home. Then send the treatment home with the new owner so they know whats going on and how to deal with it. If seller didn't notice,
opps, but at least pay for the meds the pups needs to get better. Glad you got some $$ back, I think that was the right thing to do.