2nd or 3rd employee? I'd expect it of all candidates where it is relevant (i.e. not the cleaning crew). And I'd expect it before the phone interview.
How can they hold a meaningful conversation with you if they don't know what the product does and how it behaves? This is relevant stuff they should be quizzed on vs. how many Pascal Triangles you can fit in a 747 or some such nonsense.
This is your FizzBuzz. Maybe your pre-FizzBuzz. If they're too "busy" to take a look at your product, you're too "busy" to talk to them. Best of luck...