With one of many job applications I did, I received a small coding exercise before getting to the actual interview. It was about writing a small application in perl (one of my favorite scripting languages) to solve a problem. It was a number converter from arabic to roman and vice versa. Anyway I started by looking up a perl module that solved the whole thing in 3-4 lines of code. What was the answer? Sorry that's no…
You really didn't know what they wanted? You think they wanted you to find a library that did it?
In tests like this you make it clear what's allowed - "use the standard library, no external dependencies" etc. Because in a normal working situation, his solution is perfectly valid.
If I were interviewing him it certainly wouldn't be a dealbreaker. I'd probably want to discuss more about pros and cons of in-house vs using libraries, because you tend to find out more about the skills and qualities of a developer from human conversation than scribbling on a whiteboard.