Revealing: When Daniel is being taught by Terry Silver in the Kobra Kai Dojo, just after Daniel hurts his foot on the training instrument, Terry decides to show him how to do it. The left plank of the instrument, just before it breaks, you can see it's been pre-cut to break easily. (Zoom in necessary.)
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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. See more...
The Karate Kid III (1989) - 10 mistakes
starring Ralph Macchio (add more)
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.
Continuity: When Daniel is being beaten up by Mike Barnes in the Bonsai store, just after Daniel breaks the glass in the window, look to the left of the screen. There are 4 crates, 1 on top of each other, then when Mike throws Daniel away after punching him, look in the background there are 3 crates and then two next to the 3 crates piled up instead of 4, like we saw in the previous shot.
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