It is a "title II" firearm, not a class III. Nothing to get bent out of shape over.
[QUOTEGord if you check ie... model1sales.com, you will see that they sell as a kit a fully assembled M-16 upper icnluding all the lower installation parts including but stock "minus stripped lower". All their AR kits will be delivered to your door, but the M-16 kit has to be purchases through III FFL with stamp [/QUOTE]
You can buy uppers all day long without an FFL, and it says so in model1's catalog on page 15. However, check what you are looking at in barrel length. If its less than 16", then it when assembled it is considered a Short Barreled Rifle, thus only legal to use on a registered receiver.
Of course, if you buy one of these and already own an AR that isn't registered, then you might fall into the "constructive intent" trap. Basically, don't buy the shorty AR uppers unless you have registered a receiver.
It does NOT have to be a fully automatic lower to buy a shorty upper. You can just register any AR and buy the appropriate short upper for it. Sure, it won't have the happy switch, but it will be short and save you $k$k$k$k.
Bottom line, that "lower reciever" is what makes the gun. As mention several times above, it is what is registered, and depending on what it is, determines whether its full auto or not. The complete kits are "complete" only so far as to offer an interchangeable upper to your receiver. Essentially, a different barrel setup. You can buy one, but it is in no shape even close to a complete rifle.