None of these people are booking banquet halls and asking about orange juice.
The setup is kind of ridiculous and I suspect just a little bit made up just to give it a pithy name that makes people say "What's the orange juice test?" so you can go into this whole spiel about banquet halls.
The core idea is sound: Don't work with people who either don't know what they're doing or try to make your decisions for you. But I wouldn't work with anybody calling it the orange juice test either, because it seems like something someone made up to feel smart by knowing arbitrary jargon.
It's the idea of requesting the contractor to give feedback on a task that you have no intention of having them complete that people (including me) are taking issue with.
The title of the test is irrelevant - the test could easily be asking a contractor if they could develop an application that does abc in such-and-such a time-frame then turning round and telling them "I don't actually want an application that does that, I just wanted to see what you'd say".
The key thing is whether the response is "that's impossible" or "you can have that for this price." In the anecdote, the businessman told Gerald that he'd already passed the test.