ORA or not doesn't matter it still has the potential to starve to death..... If it is an ora awesome your friend got a good deal on a fish that could potentially die anyways, if its not an ora then he paid average price for a fish that could potentially die.... Either way he should of done the research and figured out that its probably not a good fish for that system especially as a newb, and as someone who is experienced or knows better you should have preached this to him from the begining and this whole situation could have been avoided anyways.
Is it possible ora or not that it could survive... YES, so heres a solution instead of coming and saying its illegal, when you really can't prove it isn't an ora fish (and ok if ora stopped breeding these guys then guess what theres probably a reason, like they still die, so the shop owner would have a reason to discount it severely since $16 is better then $0 dead), why not try to help your friend get it to survive instead of neglecting it since it might not be what he thought it was... it is still a mandarin which is what he paid for, IMO the wild ones are better anyways (but none are great for a tank that size w/o fuge). IF it will take prepared foods feed it atleast 3-4 times daily small amounts, and either way start dumping pods in! Even without a fuge it is possible to keep the pod population ok, just need to build "pod breeding stations" with small piles of rubble and occasionally still dump pods to play it safe!
Either way, I am glad my LFS is good and will deny fish to people who can't care for them!