The One with the Stoned Guy - S1-E15
Other mistake: Mid episode when Monica turns off the cordless phone after being told by Wendy that she can not make it, the phone makes the "out of range" audio tone instead of the "power off" audio tone. Occurs directly as Monica says, "Wendy, we had a deal, yeah, you promised. Wendy, Wendy, Wendy.".
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.