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There are a couple things that you can do:
You can initiate litigation against the seller. You appear to have at least two claims that you can make:
a) fraud - you must be able to show that the seller knew or should have known that the dog suffered from mange.
b) Breach of the implied warranty of Marketability under the Uniform Commercial Code. Under the UCC, adopted by all states, things that are sold into the stream of commerce come with an implied warranty of fitness unless such warranties are specifically disclaimed.
Here is a link to the provision:
Depending on the amount of money at issue, you likely can sue in small claims court. This link provides the dollar limits for each state:
Your local small claims court will have the forms that you need to file. You will have to pay filing fees and service fees.
BUT before you file a lawsuit, you would first send what is called a Demand Letter. The Demand Letter specifies your complaint to the seller and demands reimbursement for your damages. This link shows how to write a good Demand Letter:
2) If the seller is in the business of breeding and selling dogs you may be able to file a complaint with your State's Attorney General Office of Consumer Protection. Filing a complaint with the Attorney General will cost you nothing. So that is a good first step.
You can do either or both of the above actions.
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