purplekisses, I'm sorry this situation has not been a good one. I just can't help but wonder what deplorable conditions this poor pup must have been living in before your saved her. If it were me I probably would just love her and pamper her as a pet and chalk it up to a hard lesson learned.
You could try the legal route but I'm not sure how easily this will be if your in two different states. I know it can be a bitter pill to swallow when you feel you have been wronged and then to let the person walk. It may not be what we want to do it's just that you might have to...I did find a link to read about puppy sale laws, maybe you can find something useful to use.....
About.com: http://www.animallaw.info/articles/aruslweiss2001.htm About.com: http://www.animallaw.info/articles/aruslweiss2001.htm
Good luck to you and give your little one hugs and kisses.....