Final answer:
James's behavior of telling lewd jokes and making offensive comments creates a hostile environment, which is a form of sexual harassment characterized by pervasive unwelcome sexual conduct that creates an offensive work setting.
Step-by-step explanation:
This concept refers to a form of sexual harassment where an individual is subjected to unwelcome sexual advances, comments, or conduct that is pervasive enough to create a work environment that is intimidating, hostile, or offensive. The behavior does not need to be explicitly tied to a tangible job reward or penalty to fall under this category. A quid pro quo harassment, on the other hand, is when a person in a position of power demands sexual favors in exchange for job benefits, which does not appear to be the case with James, as it involves a direct exchange of rewards for sexual favors.