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1) Harvey tells Jake that Cohn is a moron, and then he calls Cohn a moron to his face.
2) Harvey asks Cohn to answer a question immediately; what would he rather do if he could do anything? Cohn can't react that quickly; he starts to think, and Harvey gets annoyed. Cohn finally answers that he'd like to play football again, and Harvey, amused with such a simple answer to such a marvelous question, says: "'I misjudged you....You're not a moron. You're only a case of arrested development.'"
1) Cohn tells Harvey that maybe a punch would do him good, but Harvey doesn't care; he just continues to laugh at him mockingly.
The Sun Also Rises/ Chpater 6, pg. 44