When you approach a stopped public transit bus from behind, you must yield to the bus:
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When the bus has its turn signal and flashing yield sign on.
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Only when it is not safe to pass the bus.
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When the bus has its emergency lights on.
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Only if it doesn't appear safe to proceed.
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Explanation
When a bus indicates its intention to re-enter the traffic lane by activating its turn signal and flashing a “yield” sign, vehicles approaching from behind must yield to the bus. This ensures that the bus can safely merge back into traffic without obstruction.
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This question appears in the following DMV practice tests: