Equine Law?

I NEED HELP! I live in KY and purchased a foal in utero in NC for $3200. We signed a contract, which one statement that is potentially harmful to me is "RISK OF LOSS Pending the birth of said foal Seller shall assume the risk of loss and upon the birth of said foal Buyer shall assume the risk of loss." Other than that, there is a $640 nonrefundable deposit, that should said foal die, be applied to a foal of the same breeding for the following season. Needless to say, the said foal died in the Seller's possession at 6 days of age. The Seller stated she does not intend to re-breed for the follow season because said foal died of a genetic defect and the Seler does not want to risk the same thing happening next year. The Seller has refused to refund my money to me stating the foal was born alive and I assumed the risk of loss once it was born. IS THAT LEGAL? Did I just pay $3200 for a dead foal that I didn't even have the pleasure of meeting? I know what the RISK OF LOSS statement says and means, but it just doesn't seem legal. How could I possible assume the risk of loss for a foal that is not in my possession? Any advice would be greatly appreciated. Thank you in advance.

Also, I have to add that prior to signing the contract I specifically asked the Seller in email if something were to happen to the foal, would I get my money back, and she replied in email that I would be reimbursed. I saved all correspondences and have that information as well as the contract. She has yet to provide me with a death certificatre for the foal or any statement from a vet.

I woke up this morning to a bill from this woman for $1200 for medical bills for the foal!!!!!!!!!!!!!!!!!!!!!!

I am updating this so anyone else in this situation may have some help. I called the local Sherriff department (in her area) and they are issuing an arrest warrant for "obtaining property under false pretenses". She will have the opportunity to refund my money to me, if she speaks with them. Otherwise, a warrant will be issued and she will be arrested and summoned to court under a felony charge. The sherriff department stated the contract is not a legal document and federal law comes first because the dollar value is over $1000. I may not even have to appear in court! I will post updates as I get them.

I have also filed a complaint with the BBB in her area. The complaint is pending. I was told the contract most likely is completely void, as the Seller obtained the contract under false pretenses by telling me in writing prior to the signing of the contract that she would reimburse me if anything were to happen to the foal, when in fact she had/has no intension of doing so.

[ I called the local Sherriff department (in her area) and they are issuing an arrest warrant for "obtaining property under false pretenses". She will have the opportunity to refund my money to me, if she speaks with them. Otherwise, a warrant will be issued and she will be arrested and summoned to court under a felony charge.]

This seems a little hard to believe. You must have an aggressive sheriff's office because most would say you need to resolve in small claims.