When are 169.254.x.x addressees assigned

Had a printer that was getting a 169.254.x.x address. This post

https://superuser.com/questions/840388/i-am-using-windows-7-and-i-get-a-169-254-x-x-ip-address

implies that the the Ethernet link has to be up /up before a 169.254.x.x address will be assigned i.e. layer 2 has to be up but no DHCP server is responding. Is this strictly true or can layer 2 be down and the printer will still get a 169.254.x.x address.

Edit : should be addresses not addressees