I let my buddy take my Z for a spin yesterday and about a few minutes into the ride at a stop sign we smelled something..he was like "thats your brakes...smell when they are new"...we start rolling and slowing down at light we hear a squealing sound....then we see the parking break is up.

Could it be damaged in that short distance? Should I have it checked out?

 

Dude, if your friend doesn't know when the parking brake is all the way down AND misses that light in the dash telling him it's still up, never let him drive that car again.