The black dog is standing by the wall next to the orange.
The dog is near the orange.
Standing by something does indicates nearness to that object.
exists e1 s1 x1 x2 x3.(n_orange(x3) & n_wall(x2) & n_dog(x1) & a_black(s1) & Theme(s1,x1) & to(e1,x3) & r_next(e1) & by(e1,x2) & Actor(e1,x1) & v_stand(e1))
exists p1 x1 x2.(n_orange(x2) & n_dog(x1) & near(x1,x2))