This puppy was not abused. Many backyardbreeders (BYB) view their dogs as a way of making an income and while I total disagree with the way this animal lived it is not illegal and is not considered abuse.
You have a wonderful opportunity to open up a whole new world for this little one and you can easily teach it to go up and down stairs and look to walk with a harness on.
In regards to your children, please tell me what has been happening when this little one bite? Were the kids sitting down on the floor and letting the little one come up to them...Many Yorkies do not like children and are afraid of them so hopefully all of you wil have patience with the dog..