It does sound like she is getting the pups from her own "stock" or has favors owed her in the form of pick of the litter. Neither of these is cash from her own pocket. I suspect the issue is she doesn't want to come up with cash.
If the $ were an issue, and I couldn't afford to get a puppy elsewhere I would probably take up her offer of a new one, with complete bloodwork, done by YOUR choice of vet. I would also ask for a new guarantee of 12 months (maybe negotiate that lower if you have to) at least for genetic issues.
Other than my opinion as above, go with your gut. Unless your gut has made mistakes before! |