The One With Phoebe's Birthday Dinner - S9-E5
Factual error: The restaurant refuses to take anyone's orders until they're all seated, which means that the group is sitting, occupying a table, without earning any revenue for the restaurant. There isn't a restaurant in NYC that would have such a policy, since it basically guarantees that a table becomes a revenue vacuum. (It also makes for very unhappy customers, but that doesn't qualify it as a factual error, since some restaurants might be actually stupid enough to not care about their return customers).
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.