EmGo11 -- I think you did the right thing. I cannot see the difference in selling in that sort of venue and selling in a petshop or brokers shop. She was still selling to anyone who walked in. Pricing the same pup from $350 to $900 based on the conversation and customer is bizarre. Saying the dog was spastic and then not providing any sort of health guarantee would be enough to walk away no matter how cute the little fellow was. Saying she was not going home with puppies is pretty cold too -- most breeders that care have occasionally kept a pup for weeks longer than expected waiting for that right person to take them. A caring breeder is not that much in a hurry to "get rid" of pups -- they are more involved in finding a truly great owner to care for puppies they love. If someone is having so many litters that they have to go to this extreme to try to "make room" for the next litter, then they are not properly planning -- they are just going for quantity sales.
What does that sound like?
Don't worry about a person making a very first post saying something to you in this thread. Many times when that happens it is the breeder themself trying to give themself accolades when they find there might be some criticism of them online. Not saying that is what this one is, could also be a friend or acquaintence but the liklihood of the very person that bought the exact same puppy you were talking about coming here and immediately posting in your thread (when they have never been here before) is remote at best. Most of these breeders do searches on a regular basis to see if they are getting negative feedback they can deny. Still, this might be someone that has come to know her over the years as she said. Surprised if she was that well known to the breeder, that she didn't get the $350 deal too.
No denying there are cute puppies that CAN make wonderful pets being sold in less than professional circumstances. There are many examples right here on YT. But most all of the owners say they would do it differently now that they know. I was one of those first time around. Fell in love with such a cute little yorkie and left glad to have gotten such a cutie for a "good deal." It was a sad long story....suffice it to say I did it much differently next time! You just don't feel good about supporting unprofessional sales of puppies. They are living things -- not a craft show item to be sold at "events."