I would first try talking this out with my employer. I would keep a list of my concerns handy (agenda items, if you will). If things got more formal I would then move to putting things in writing. Cross one bridge at a time.
Come what may, I would think maintaining honesty and integrity with one’s employer (and in general) is better in the long run than an adversarial relationship.
Since there are no guarantees either way, at least there would be self and mutual respect at the end of the day.
You are definitely going about this the right way. It appears that you have a really good handle on this. Please let us know how it works out.