I absolutely agree with you Rockhillmanor.
For those who think this person is being a good business person, think about it this way:
She has defective merchandize and is selling it off to an unsuspecting customer. THIS customer is going to be buying the dogs as pets (since they are not capable of breeding) and they are quite likely going to have a pet(s) with serious health concerns (if the dog has a uterine infection, this is going to just get worse with time left untreated).
Nothing about this woman's actions exemplifies Good Business.
A good breeder would never not know their dog was pregnant - first off because they would only allow the dogs to mate at appropriate intervals and for the sole purpose of a resulting pregnancy.
A good breeder would never say "it might be a uterine infection" - they would have had the dog thoroughly checked out by a vet BEFORE beginning a breeding program and would never have allowed 16 puppies to die before deciding to stop breeding them.
A good breeder would never just decide to buy a breeding pair of dogs and start breeding. A good breeder would have been involved with the breed for years before starting such a program. A good breeder would have a love for the breed and the dogs and would base all decisions on the welfare of the dogs and the integrity of the breed.