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I'm just a friend helping out with the situation. The dog has been spayed and there has been no obedience or behaviour intervention with the dog, but it has been strongly suggested that they try this. Yes the original family would like to keep her and try training etc, and the children are 6 and 8 approx. She is spayed. The original family was thinking of giving her back, but when I asked the questions you did, and as I observed the children were treating the dog as a "toy" I suggested the whole family go to obedience training with the dog as they were already talking about getting a new puppy when one became available. In other words they totally saw it as the dog's problem and not a "family" problem. After leaving the dog, the family called an hour later and wanted her back. As there has been no intervention to date, can this dog stay in this family safely if they start to go to obedience/modification now. They are calling it treat aggression, but I quite easily took a treat out of her mouth several times without her even flinching.
I would take this dog in a second if I didn't already have three. She cuddled into me and stood by my side (or the breeders) as we were sitting outside with her. SHe didn't try to jump on us (as doodles will) when we were sitting, nor demand attention, but loved it when she got it. She was not nervous or scared, even when a young male poodle came over, she just played with him. I also did not see one sign of her trying to be dominant over anybody. I think should could get worked up to be hyper in the moment, but then again she is only 1 yr old. I have to say, she actually behaved better than my two doodles would have in hte same circumstance. But all that being said, I don't know if a bite is a bite and the dog should be removed or can this situation be recitfied. Thanks!!