Small Engines (Lawn Mowers, etc.): New Kawasaki 19HP engine: gas in oil, cylinder walls, needle valve

Question
Zero turn mower just bought... 3 hours logged on engine and carb needle valve apparently stuck resulting in no start, gas smell coming out exhaust, quickly engine appeared to seize when trying to start.  Did not realize what was wrong: mower started next day.  I logged a couple more hours on mower and it happened again (engine just killed), this time I noticed gas flowing out exhaust when atempting to start and also gas in oil.  Most likely gas was in oil when I logged a couple hours.  Dealer has mower and will "fix it".
QUESTION: Has permanent damage possibly been done?  (i.e. 1. engine appeared to seize, perhaps scoring cylinder walls? 2. Engine ran with gas in oil).

Answer
Very little damage was done.  My guess is that you got a great price on this mower and it had been in the dealers inventory long enough to have varnish in the carb.   The reason the engine seized is a thing called "hydro lock".  The cylinder was full of fuel and the liquid could not be compressed.

Fuel in the oil might actually help this engine "break in".  Increased friction during early hours will help the rings seat better.