Oh, that's pretty interesting, and through your bosses actions your employer is sailing close to the wind.
Start by reading here.
http://www.businesslink.gov.uk/bdotg/action/de tail?r.l1=1073858787&r.l3=1074019927&r.lc=en&r .t=RESOURCES&type=RESOURCES&itemId=1073792402& r.i=1073792401&r.l2=1073876974&r.s=m
Further down this page you will come to be bit where it says that a potentially redundant employer has a right to be considered for alternative employment.
I suggest you write notes now on the nature and content of your conversation you had with your boss. Date it, sign it.
Then write a covering note to your boss something along the lines of Dear Boss, I confirm that I wish to be considered for the positions in Sales or any other alternative positions in the company for which I am suitably qualified, as an alternative to redundancy. I am taking the opportunity to include a copy of my own notes written soon after our recent conversation about this matter. Would you please take appropriate action to ensure that I am considered for the positions in Sales of which we spoke.
Once personnel get hold of your letter (as they surely will), action should be forthcoming.
The answers to your questions are 1) Yes. 2) No.
Post again if you want more help.