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.
Plot hole: Daniel first needs Miyagi's signature (which Miyagi refuses) to enter the tournament. However the rest of the movie focuses on Daniel's signature needed to enter instead. Didn't Miyagi officially need to sign? How did it suddenly switch?
Trivia: When Daniel is persuading Myagi to use his college money to buy a store for selling Bonsai trees, he takes a wad of cash, smells it, and says, "Hmm. Looks like money.smells like money." Ralph Macchio has practically no sense of smell at all, so just for fun he always makes a point to smell something in every movie he does.Matty Blast
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