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With Python 3.4.1:
$ mkdir foo; zip -r foo{,}; python -mzipfile -e foo.zip dest
 adding: foo/ (stored 0%)
Traceback (most recent call last):
 File "/usr/lib/python3.4/runpy.py", line 170, in _run_module_as_main
 "__main__", mod_spec)
 File "/usr/lib/python3.4/runpy.py", line 85, in _run_code
 exec(code, run_globals)
 File "/usr/lib/python3.4/zipfile.py", line 1799, in <module>
 main()
 File "/usr/lib/python3.4/zipfile.py", line 1777, in main
 with open(tgt, 'wb') as fp:
IsADirectoryError: [Errno 21] Is a directory: 'dest/foo/'
Note that zipfile is actually able to unzip the file:
$ python -c 'from zipfile import *; ZipFile("foo.zip").extractall("dest")'
works fine.
If the zip file is created by "python -mzipfile -c foo.zip foo" then there is no problem. Likewise, if there are no folders in the zip file (but just a collection of files) then there is no problem.