A) Frame-relay: the router will send the frames down the specified DLCI and the frame relay switch will drop them (PVC down in the FR switch) or forward them to the point, where the PVC is broken.
1) ARP entry for Router B still present. The router will send the traffic into the LAN switch with Router B MAC as destination. The LAN switch will flood the traffic to all ports in the VLAN (unknown traffic). There the traffic will be dropped.
2) ARP entry for Router B is timed out.
The router will arp for the next hop, i.e. for the IP of router B. As no ARP reply will be received, no valid ethernet frame can be created and the traffic is dropped locally in your router with the default route.
Thanks Martin. I'm not sure about number one though. If the ARP entry is valid, it is assigned a port to pass traffic to. Why would it flood the switch like a broadcast? Please comment if I'm understanding it wrong.
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