The only time drivers do not have to stop for a school bus whose red lights are flashing and stop arm is extended is when they:
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Are behind the bus.
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Are not in a school zone.
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Are driving on the opposite side of a divided highway.
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Can safely pass on the left.
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Explanation
When approaching a school bus on the opposite side of a divided highway with its red lights flashing and stop arm extended, you are not required to stop. Even then, reduce your speed and proceed with caution. This is the only one exception to the school bus stopping requirement.
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This question appears in the following DMV practice tests: