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A refractor is a telescope, and spotting scopes are refractors. A refractor refracts light, i.e. uses lenses. A reflector reflects light, i.e. uses a mirror.
Binoculars are basically a pair of refractors stuck together. The reason binoculars don't have an upside down image is because they have a prism in them to reverse the image. Spotting scopes usually have a right angle prism built into them (thus you look in the top at right angles to the end of the scope).
A refractor that is sold as a telescope generally won't have a right angle prism built in, but you can get an eyepiece with the prism (or a mirror) built in which will make the image correct way up.
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