Lillian demands the Rearden Metal bracelet back and threatens to tell everyone that Dagny is sleeping with her husband. What is the irony of that situation?

The idea is for the government to pass laws that are impossible to interpret or enforce so that they may use them to get cooperation out of people like Hank Rearden. Dr. Ferris sees it as harmless and useful. Hank sees it as diabolical and throws Ferris out of his office. He cannot be blackmailed into doing what he knows is morally wrong.