Fowlhunter,
If a breeder wants a "defective" pup back in order for a guarantee to be honored, then you chose the WRONG BREEDER ! ! ! (let the buyer beware)
If you got defective pups as you state, and the breeder wanted the pups back (who's going to do that?) Then it was YOU who screwed up.
No wonder you don't think this thread should have been started in the first place.......................................[

]
Most honorable and reputable breeders will give you your money back or offer the next pup free or for half price -- all you should have to do is have Veterinary Medical proof of the genetic problem and as soon as you send the breeder proof of spaying or neutering, the guarantee should be honored and you keep the dog.