After arriving home from prison, Jimmy changes into nice clothes, grabs his burglary tools, and walks by Mike, the owner of the café where he rents a room (who is part of organized crime alongside Jimmy). When Mike subtly asks Jimmy if he’s going to rob someone, Jimmy responds using verbal irony, as seen in the following passage:
In half an hour Jimmy went down stairs and through the café. He was now dressed in tasteful and well-fitting clothes, and carried his dusted and cleaned suit-case in his hand.
“Got anything on?” asked Mike Dolan, genially.
“Me?” said Jimmy, in a puzzled tone. “I don’t understand. I’m representing the New York Amalgamated Short Snap Biscuit Cracker and Frazzled Wheat Company.”
The verbal irony here comes across in Jimmy’s “puzzled tone” in reaction to Mike’s suggestion of criminality, as well as his claim that he is “representing the New York Amalgamated Short Snap Biscuit Cracker and Frazzled Wheat Company.” This is an example of verbal irony because Jimmy and Mike both know that Jimmy is not a businessman representing the (likely fictional) company he names, but, instead, a hardened criminal going out to rob a bank.
This moment is also a subtle example of situational irony because Jimmy soon enough does go on to become a reputable businessman when he moves to Elmore and falls in love with Annabel (though he is a shoe-maker, not a representative of a “biscuit cracker and frazzled wheat” company).