Just ansver politely that "for you to have the best possible result of this project, I will need a high-resolution image to work with, if webgraphics are used in printed pieces it may result in poor quality. If you decides that I shall use images taken from the web then you have to take responsibility that the outcome may be variable in quality" or something to that effect. Don't try to make your employer look stupid, but explain that he may be sitting with a poorer piece of designwork from you, and this must be his risk to take, not yours.
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glunge
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