Carl and Sam Prutch (plaintiffs) purchased four pieces of farm equipment from Ford Motor Company (Ford) (defendant) through a dealer, Baldridge Implement Company (Baldridge) (defendant). The equipment was defective, causing the Prutches to produce less than their usual volume of crops. The Prutches sued Ford and Baldridge for breaches of implied and express warranties arising out of their equipment purchases. After a mistrial, a jury entered a judgment against Ford, awarding the Prutches damages of $60,200 for their lost crops and finding that Baldridge was not liable. Ford appealed, and the court of appeals vacated the jury verdict and remanded. The Prutches appealed, and the Supreme Court of Colorado granted certiorari. On appeal, Ford argued that it could not be held liable for consequential damages if Ford did not have actual knowledge of the harm its defective equipment would cause.