John Li has worked as manager of a video store for six years. Since the 7-Eleven next door began renting movies for 97 cents per night, Li's business has fallen off drastically. Accordingly, the owner of the video store told Li that, because the business had fallen on such hard times, he would take over managing and Li would have to assume the counter duties. The present counter clerk would be laid off. The owner also told Li that his wages would be reduced by 15%. When Li came to work the next day, he told the owner that he wouldn't accept the job working at the counter. The owner became angry and said, "If you don't like it, then you can leave! I don't have to put up with your insubordination for one minute!"

a) Applying the correct principles of employment law discuss the potential principle of law under which the owner can possibly make an argument to validate his actions.

b) Applying the correct principle of law discuss the option(s) open to Li given the facts of the questions.