Only private transactions between individuals involving (probably) a single firearm owned by the seller are exempt from the NICS requirement. These sales represent a tiny minority of transactions at a gun show.
I have not been to a gun show since 1991, but; it was as you stated. A full check was run on anyone who bought from any dealer with a booth/setup. We had background checks that took up to 15 days then.I would not buy a weapon unless it was a long time friend or a FFL dealer.