You'd have to check the breed standard for your kennel club. the New Zealand kennel club has the requirement of docking - so if the tail wasn't docked that would mean points off. If they passed a law banning docking then the breed standard would have to change.
Here's the NZ breed standard:
http://www.nzkc.org.nz/br164.html
It would seem that Dixie's tail has been docked too short - she only has a tiny little nub of a tail. Poor baby.