Late to the party but want to relay my own experiences:
Several times I have been asked to do this. The first time, company got in trouble. The second time, the other company got in trouble and blamed me. If I didn't have a backup of all the emails I would have been in trouble. I followed up every conversation with:
"Just confirming: you want me to reproduce this website exactly, and as stated in the meeting said I should re-use the code? As I am stating the code can't be reused and you accept legal responsibility for copyright. I know you said that anything on the Internet is fair game but I just want to confirm.
Can you confirm you understand both?
1) You are aware of copyright law and have instructed me it is okay to copy a website and you have permission to do so.
2) You understand that I can't drag and drop assets from a website to > another in a matter of seconds (we can have a sitdown and go over this)."
They begrudgingly said yes to both, followed with
"hahaha you dorks crack me up. Just do what I say okay?"
They clearly didn't care, just were grumpy about reality not being easy.
I wanted to make sure they understood that both not only is it against the law to copy websites, you can't just drag a slider from one website onto a crappy WordPress blog and have it work and use the images. Point 2) was harder and never understood and I walked away when I had done enough to pay rent.
Had I not done that, they would have pegged everything on me. Their legal team insisted they had no design direction (despite 10-30 daily emails to suggest otherwise).
I had also posted screenshots of the emails on a private Twitter account so they were time stamped and retained recordings of our Google hangouts just in case.
Paranoid? Hell yeah. Am I glad I did it? Of course!
Unless you are really desperate for cash, as I was at the time, leave a client or employer who insists on copying something wholesale as they likely have no scruples— and probably won't even pay you remotely on time without a fight! They think they know better and rules/laws don't apply to them.
One other time before that I was asked to copy something was a logo for a supplement company that sold products to post-menopausal women. The person who oversaw the project saw the Nine Inch Nails logo in the newspaper and thought: "that's it, that's the logo we need to sell stuff to women in their 50's with hot flashes! So neat, a N, an I, and a backwards N!" as the company's name as an initialism was NIN. Luckily, the client was so furious at seeing NI(backwards)N and heard her reasoning it was dropped. Funny in retrospect. I just got shivers thinking of how I was a breath away from being thrown under the bus.
I've had clients want to copy things wholesale and I fire them. Again the issue is they think they are helping you and doing half the work, like showing a photo of the steak you want means it will be half-price at the steakhouse because you have shown them the steak and how it looks. People of the same mindset have no issues blaming you if it blows up in their face. Just get out.