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
Other mistake: When Miyagi throws Mike into the light switches, the lights go out but the switches never change position.
Daniel Larusso: I know you don't believe in fighting, but tournament karate isn't exactly fighting.
Mr. Kesuke Miyagi: Not exactly ping-pong, either.
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.
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Chosen answer: First he could have just been out of practice, but the point they made in the movie was that his moves were old, so they knew how to counter the things he did in the past to win.
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