Which statement below is a false.

Question $3$ options:

$42$ U$.$S$.$C$.$ Section $1981$ prohibits discrimination on the basis of race or ethnicity in the formation or enforcement of contracts.

$42$ U$.$S$.$C$.$ Section $1981$ was enacted as part of the Civil Rights Act of $1866$ with a purpose to protect freed slaves.

There is a cap on damages based on a violation of a $1981$ claim.

A Section $1981$ claim is an alternative basis for causes of action arising out of an employment contract.