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A
Slow to 10 mph and pass carefully
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B
Stop completely and remain stopped until the red lights stop flashing, the arm retracts, and the bus resumes motion — in most states, this applies to ALL lanes of a two-lane road in both directions
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C
Pass if no children are visible outside the bus
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D
Stop only if you are behind the bus
Why this is the answer
SCHOOL BUS STOPPING LAWS are among the most strictly enforced traffic laws in the US because the risk of child fatality from passing a stopped school bus is extremely high — children often cross in front of the bus after disembarking. THE BASIC RULE for a TWO-LANE ROAD: ALL vehicles in BOTH DIRECTIONS must stop when a school bus activates its flashing red lights and extends the stop arm. You must stay stopped until: the red lights stop flashing; the stop arm retracts; the bus begins moving forward. THE RULE FOR DIVIDED HIGHWAYS (4+ lanes with a physical median): Vehicles behind the bus must stop; vehicles on the OPPOSITE side of a divided highway with a concrete barrier or raised median typically do not need to stop (the physical barrier prevents children from crossing there). State laws vary on exactly what constitutes a 'divided' highway — err on the side of stopping. COMMON MISTAKES: Assuming the flashing yellow lights (which the bus uses before stopping) means you should stop — yellow means prepare to stop, not stop; assuming you don't need to stop because you're on the oncoming side on an undivided road — incorrect; assuming the law doesn't apply when no children are visible exiting — children can appear quickly and unpredictably. PENALTIES: School bus passing violations are typically major penalties (points, fines, sometimes misdemeanor charges) and may result in license suspension.
Source: State DMV handbooks, Right-of-Way, School Bus Laws