There are different ordinances in different states, even in different cities. I would check out the one in your area to see what the rules are.
Hey, I thought we lived in a free country and had the right to refuse to sell to anyone we did not want to sell to.
The chinchillas are yours and if she has not given you a down payment, I do not see how she can bring you up on any charges. You were selling her the cage and going to give her the chinchillas.
It's this kind of stuff breeders have to put up with ... this is why you need a contract when selling your chinchillas ... that way everyone has the right to blackout during a specific time frame and/or has some legal recourse if a problem arises.
I was allowing my chins to be adopted without a contract for over a decade without the first problem ... until ... I ran into problems with two different people (within a 3 month period) ... now I am in a legal battle with one and will be with the other as soon as I finish with the first one. But, I am the one that is bringing the charges in both instances.
If you were to have problems with the town or city you live in because you are breeding chinchillas, I would check the ordinances with the town ... IF they say you can not breed, usually if you just stop breeding they will go along with it and stop at that point. If not, then they will have to prosecute ever fish owner, gerbil/hamster/cat and dog owner that contributes to the animal population in your area. Not likely would they be willing to do that.
As far as this woman, I don't think she has a leg to stand on ... has an attorney contacted you? Or is she just threatening to sue you?
Jo Ann