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Why did he die?
Are you asking if you are liable?
You could be.
You are a commercial seller and so the Sale of Goods Act applies. That will demand that anything sold is 'fit for purpose'. Life stock can never really be wholly defect free of course but I'm afraid a court probably would expect a puppy to last longer than ten months in the normal course of events.
It depends what killed him. Any dog can contract things like lungworm or kennel cough but they are clearly alleging breed defects. Breed defects are covered by the SGA.
There is an argument that they could claim for vet's bills as well on the basis of consequential losses arising from the law of contract rather than the SGA but they won't do that. It is all far too complicated and people tend to give up.
I would make offers though. if they have to go to court they will have nothing to lose.
Sorry but I have to give you truthful information.
Can I clarify anything for you?