Factual error: The storyline in Karate Kid 3, based on the happenings and reference points of the first two movies, is supposed to take place roughly about late 1984, or early 1985. However, if you look close at the beginning of the film when Terry Silver drops off John Kreese at the airport, there are several cars that are definitely later 80's models.
The Karate Kid III (1989)
1 factual error - chronological order
Directed by: John G. Avildsen
Starring: Ralph Macchio, Pat Morita, Robyn Lively, Thomas Ian Griffith
Continuity mistake: At the end of the final match, the announcement is made it's the first time in history the defending champion kept his title. Yet in Karate Kid 1 Johnny Lawrence had already won the championship twice and was there for his 3rd time.
Mr. Kesuke Miyagi: Inside you same place you karate come from.
Daniel Larusso: My karate comes from you.
Mr. Kesuke Miyagi: Ah. Only root karate come from Miyagi. Just like bonsai choose own way grow because root strong you choose own way do karate same reason.
Daniel Larusso: I do it your way.
Mr. Kesuke Miyagi: Hai. One day you do own way.
More trivia for The Karate Kid III
Question: I've heard that many people (Ralph Macchio included) do not like this movie. Is there a reason why?
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Answer: Ralph Macchio admitted that he didn't like it as he felt that they were just making the first movie all over again and left out a lot of good stuff.