Title VII of the Civil Rights Act of 1964. Title VII prohibits employment discrimination based on race, color, religion, sex and national origin.However, while the standards of liability are identical, there is a major difference in the coverage of the two provisions. Applies to Section 1981 actions in the same manner as in Title VII actions). 136. Section 1981 protects the rights of all persons to enter into and enforce contracts. Section 1981 grants individuals the right to make and enforce contracts, regardless of race. This is because Section 1981 and Title VII differ in two relevant ways. Two major vehicles for redressing private racial discrimination are Title. VII and 42 U.S.C. § 1981. Smith filed a pro se action against the University under both Title VII and § 1981.