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Realistically, most "guarantees" are really
a promise of replacement if something goes wrong with your puppy after you buy him/her. Even the most conscientious of breeders cannot predict if your puppy will develop certain unknowns ie:hip dysplasia, spine disease, or other unpredictable elements. What they CAN and MUST do, is screen the parents for these things and then breed only healthy animals. This WILL reduce but NOT eliminate the risk for the buyer.
YOU as the buyer must educate yourself to the most common health problems in the breed you wish to purchase, and then only buy from breeders who screen and certify their breeding dogs to be free from these health concerns.
A reasonable guarantee will promise to replace your pup with an equal or better pup upon availability (Meaning the next litter) if a problem arises within the first year. e.g. congenital defects, crippling defects. Some guarantees extend for longer periods and more defects. A few will refund your money, but common practice is to replace a pup with a pup. Many will demand the return of your pup, however a good breeder understands owner attachments and will willingly let you keep the original dog, and, after receiving a certificate of spay/neuter, will either give you a pup then, or, give you one when you are ready. (Be ready, though, to understand that they may no longer be breeding years down the road).
Good breeders guarantee you they will help you find a home for your dog, should the need arise. They usually will not buy the dog back from you, but they also will not re-sell the pup to someone else, they will simply place it in a good home. (they may get a small adoption fee to cover the cost of Health Check for the new home)
The good breeders I know, and there are many, really want their pups and the new owners to work out. Both sides need to represent themselves honestly, and remember it's a living, imperfect being they are dealing with, not a piece of equipment. Things can go wrong, despite the best intentions and efforts of both sides.

Get everything in writing.
If it sounds too good to be true, it is.
No bloodline in any breed is "free" from problems inherent in a breed.
No one can "guarantee" anything.

You as a Puppy Buyer have certain rights when you purchase a puppy. Nearly every state operates under the UCC, the Uniform Commercial Code.
On this same site you can check the link to see if your state has adopted it. In my state, New Hampshire, they not only operate under the UCC, but have additional requirements for breeders.
i.e. "All puppies, whether planned or accidental, gift or purchase, must have:
1. a N.H. Health Certificate from a Licensed Veterinarian within 14 days of the sale and be found free of evidence of communicable disease and be found free of or given medication for internal and external parasites, including coccidia.
2. been inoculated for DA2PPV
3. be at least 8 weks old

Your state should have protective clauses for the sale of pups also, please check them out. They are there to protect you and the puppy.

The American Kennel Club (AKC)
& Registration Papers
Many people purchase a puppy without papers, and are told that for an additional sum they may "buy" the papers. It is considered TOTALLY unethical to not give the papers with a pup that is eligible to have them. The American Kennel Club condemns this practice and encourages all potential buyers to go somewhere else. A 4 generation pedigree should also go with every purebred puppy. These are 2 totally different things, a PEDIGREE is NOT a REGISTRATION. A pedigree lists the ancestors, registration papers prove the validity of the pedigree and allow your pup to be registered. The AKC does have a "Limited Registration" option for breeders who believe a puppy, although healthy and of good temperament, is not of breeding quality and who want to ensure they do not reproduce. Often these pups are offered for sale as "pet" or "companion" quality at a reduced price; still delightful family members or competition dogs, just not quite the standard to reproduce. The Limited Registration protects the breeder and the puppy from unscrupulous people looking for a "breeding deal", who promise to spay or neuter for the consideration of a lower price, but who have absolutely no intention of doing so. The Limited allows ALL activity and priveleges of the AKC EXCEPT breeding, no offspring of Limited dogs will be eligible for registration. There is an option that the breeder can exercise, if they choose, for a pup that turns out exceptional, and the breeder agrees to reverse the limited, but this really was designed to protect the integrity of the breed. Check out the Limited Registration at the AKC site in the links section.

Buyers BEWARE: There are many new Registries cropping up, many to avoid the new DNA proof of Parentage now required by the AKC on male dogs. The only registry recognized by the International dog community(FCI) for registration of purebred dogs in the USA is the AKC. There are a couple of other legitimate, ethical registries, such as the United Kennel Club and the ARBA for rare breeds not yet recognized by the AKC, but the AKC is the "official" registry in the USA. Please check out our "Breed Registry Links" for the websites to these registries.