A loop X is said to satisfy Moufang's theorem if for every x,y,z in X such that x(yz)=(xy)z the subloop generated by x,y,z is a group. We prove that the variety V of Steiner loops satisfying the identity (xz)(((xy)z)(yz))=((xz)((xy)z))(yz) is not contained in the variety of Moufang loops, yet every loop in V satisfies Moufang's theorem.
This solves a problem posed by Andrew Rajah.