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Tyson, the branch manager at Middletown Bank, hires Marge as a teller. A few months later, he urges her to engage in some sexual activity

Tyson, the branch manager at Middletown Bank, hires Marge as a teller. A few months later, he urges her to engage in some sexual activity with him in return for a promotion to the post of senior teller. Fearful about losing her job, Marge agrees. After a year of an intermittent sexual relationship with him, she tells him that the relationship is over. When she applies for the job of assistant branch manager, Tyson selects another employee in the branch with less experience for the job. In spite of the bank's well-developed sexual harassment policy, which requires complaints of sexual harassment be made to the human resources department, Marge files a complaint with the Equal Employment Opportunity Commission (EEOC). Which of the following holds true in this case?
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Middletown Bank is not liable for sexual harassment because Marge failed to report the harassment pursuant to its sexual harassment policy.
Middletown Bank is not liable for sexual harassment because it prohibited sexual harassment in its policies.
Middletown Bank will face limited liability for hostile environment sexual harassment.
Middletown Bank will face strict liability for quid pro quo harassment.

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