I got this right but...
Msg 8134, Level 16, State 1, Line 1
Divide by zero error encountered.
So it seems you can use it to divide 0 by 0 and get an error.
This makes sense, since a modulus can be defined as a product of division, you have to be able to do the division. Some systems, though, define x mod 0 as x (i.e, the difference between x and the nearest multiple of 0 [which is 0 (because 0 is the only multiple of 0.)])