Fragile Morale Question

[Ashantai]

Recently got East Prussia and I noticed that one of the additions was the 'Fragile Morale' rule for Russians and A-H armies.

Two questions regarding this:
- It says 'Units which must retreat from an assault are automatically eliminated', is that any assault, or only when they're trapped?
- It says A and B quality units are exempt, are those units always exempt, even if they're say disrupted or out of command (lowering their quality below A or B)?

Thanks in advance!