If you meet a stopped school bus with the lights flashing and the signal arm extended, you should:
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Back up, if possible.
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Stop.
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Proceed at 15 MPH or less, if no children are present.
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Watch for children and proceed at normal speed.
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Explanation
The alternating flashing lights and extended stop-sign arm indicate that the school bus is stopped to pick up or drop off passengers. When approaching a stopped school bus with its stop arm extended and red lights flashing, you must come to a complete stop before reaching the bus. It is illegal for any driver to pass a school bus displaying a stop signal.
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Other questions in the same category: School Bus Safety
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This question appears in the following DMV practice tests: