smoke and oil coming from Toro variable speed propelled mower exhaust

smoke and oil coming from Toro variable speed propelled mower exhaust

I bought a new (customer returned) mower from a salvage dealer. It has never cut grass as below the deck is pristine. I added oil and gas and it started on the second pull. It pours smoke from the exhaust as well as spits oil (maybe oil vapor) that gets the deck and wheel oily. I saw one expert said oil in the cyllinder can cause this. Even with a new mower?