Various US states have puppy lemon laws to prevent this sort of thing. In Alberta, I believe it's mostly based on the contract associated with the purchase. Even with no contract, you might have a case in small claims. The implied warranty of merchantability may apply, since puppies are usually classified as "goods"
In fact, sometimes breeders have the customers sign waivers to release them from this warranty. The enforceability of these agreements are sometimes contentious.
Alberta has the Sale of Goods Act (see RSA 1980 cS-2 s17). You might have an argument if you relied on the seller's judgment or description.
But it would be easier if the breeder just agreed to settle in some manner.
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