..........As far as asking for a partial refund, that's what we intend to do. I know it would be hard to take her to court though without having a signed contract- which I don't have.
I'm not a lawyer and what I say here might not be totally correct, but I think I'm correct on most of what I say....I've read a lot about small claims and also seen stuff on t.v. about....my brother and I ran a store for years and upon occasion had to take someone to small claims. But again, look up the regulations in your state or country.
Most small claims limit how much you can sue for... It's been a while since I've helped my brother prepare for one, but in Idaho it was like a $50.00 fee to file, and the claim couldn't be more than $500.00. Other places might have different maximum amounts one could try to sue for using small claims and the court fees might be different too.
I'm not sure where you live, but in most USA states, small claims isn't as detailed as say a regular lawsuit, where people are going after big money and have to show written contracts.
Sometimes a "verbal contract" is good enough if you can convince the judge that a business deal did happen and you were lied to. Maybe you saved the receipt or have emails still on your phone or computer showing communication with this breeder? If you have a witness who can go to court with you and tell the judge what they saw and heard at the point of sale, or when you went to pick up the dog...that would help.
Maybe you can even find others who paid for and got puppies from that same litter - if you can, ask them to go and give witness and tell the judge what they were told about the dogs being purebred by the breeder. But stress the point that pure bred or not, your dog does not look anything like a purebred and you want a refund for basically a defective product.
Be sure when writing up the claim to get the people's names/business names and their address done correctly.
Several things can happen in small claims:
1. You win your case and can collect some kind of refund.
2. You don't win - and you are out the $50.00 court fee.
3. The breeder might not even show up...and you win by default even if you might not had enough evidence to convince the judge if the case had been heard.
So, it's kind of a 2 to 1 chance you can win. Collecting the money might be another matter, but most people don't want liens put on their cars, homes, ect...

rovoke:
Also as far as lab being in the mix and children. Once the puppy stage is over, hopefully the dog will settle and labs are known to be in general, good family dogs and enjoy children. So if you do have a lab x GP mix -- it's not what you wanted, but it might not be a bad combo either as far as the kids go.
Again, do some basic research about how claims are done in your area, (as I said, I could be wrong about some of the stuff I mentioned) but round up any info/communications you had with the breeder and take lots of visual stuff to court to show the judge what a real GP looks like compared to what you have. Hopefully everything will turn out well and you can get some of your money back.
Btw, what did you name your dog? : )
Stormy